Federal Register / Vol. 77, No. 169 / Thursday, August 30, 2012 / Notices 52721 

1The 50 States, the District of Columbia, and four 

Territories, which are the Commonwealth of Puerto 

Rico, Commonwealth of the Northern Mariana 

Islands, Guam, and United States Virgin Islands, 

have State appraiser certifying and licensing 

agencies with Programs monitored by the ASC 

through the Compliance Review process. 

Description of FDIC DFAST–14A 

Counterparty Credit Risk/CVA 

Template 

The CCR schedule collects, on various 

worksheets, data to identify credit 

valuation adjustment (CVA), exposures, 

and CVA sensitivities for the respondent 

covered bank’s top counterparties along 

a number of dimensions, including 

current CVA, stressed CVA, net current 

exposure, and gross current exposure. 

Covered banks with total consolidated 

assets of $50 billion or more also must 

submit aggregate CVA, exposures, and 

CVA sensitivities by ratings categories. 

The Notes to the CCR Schedule 

worksheet allows respondent covered 

banks to voluntarily submit additional 

information to provide clarity to the 

portfolio. Covered banks with total 

consolidated assets of $50 billion or 

more are required to report results 

under two scenarios (adverse, severely 

adverse) and two specifications 

(Covered Bank, FDIC) to capture 

Expected Exposure profiles. 

Completion of the Counterparty 

Credit Risk/CVA schedule would be 

required only for those banks subject to 

the market shock provided by the FDIC. 

Description of FDIC DFAST–14A Basel 

III Template 

The Basel III & Dodd-Frank schedule 

collects projections of Tier 1 Common 

Equity, Tier 1 Capital, Risk-Weighted 

Assets (RWA), and Leverage Exposures 

(along with granular components of 

those elements) for each quarter of the 

planning horizon for the stress test 

under baseline, adverse and severely 

adverse scenarios, based on the Basel III 

framework promulgated by the Basel 

Committee on Bank Supervision. 

Covered banks with total consolidated 

assets of $50 billion or more also are 

required to include data on the 

projected impact of any significant 

actions planned in response to Basel III 

and the Dodd-Frank Act (for example, 

asset sales, asset winddowns, and data 

collection and modeling enhancements). 

Description of FDIC DFAST–14A 

Company Variables Template 

To conduct the stress test required 

under this rule, a respondent covered 

bank may need to project additional 

economic and financial variables to 

estimate losses or revenues for some or 

all of its portfolios. In such a case, the 

covered bank is required to complete 

the DFAST–14A Company Variables 

schedule for each scenario where such 

additional variables are used to conduct 

the stress test. Each scenario worksheet 

collects the variable name (matching 

that reported on the Scenario Variable 

Definitions worksheet), the actual value 

of the variable during the third quarter 

of the reporting year, and the projected 

value of the variable for nine future 

quarters. 

Description of Supporting 

Documentation 

Covered banks with total consolidated 

assets of $50 billion or more must 

submit clear documentation in support 

of the projections included in the 

worksheets to support efficient and 

timely review of annual stress test 

results by the FDIC. The supporting 

documentation should be submitted 

electronically and is not expected to be 

reported in the workbooks used for 

required data reporting. This supporting 

documentation must clearly describe 

the methodology used to produce the 

stress test projections, and must include 

how the macroeconomic factors were 

translated into a covered bank’s 

projections, as well as technical details 

of any underlying statistical methods 

used. Where company-specific 

assumptions are made that differ from 

the broad macro-economic assumptions 

incorporated in stress scenarios 

provided by the FDIC, the 

documentation must also describe such 

assumptions and how those 

assumptions relate to reported 

projections. Where historical 

relationships are relied upon, the 

respondent covered banks must describe 

the historical data and provide the basis 

for the expectation that these 

relationships would be maintained in 

each scenario, particularly under 

adverse and severely adverse 

conditions. 

Type of Review: New collection. 

Affected Public: State nonmember 

banks and state savings associations 

supervised by the FDIC with total 

consolidated assets of $50 billion or 

more. 

Estimated Number of Respondents: 4 

Estimated Time per Response: 1,040 

hours. 

Estimated Total Annual Burden: 

4,160 hours. 

Comments submitted in response to 

this notice will be summarized and 

included in the request for OMB 

approval. All comments will become a 

matter of public record. Comments are 

invited on: 

(a) Whether the collection of 

information is necessary for the proper 

performance of the functions of the 

FDIC, including whether the 

information has practical utility; 

(b) The accuracy of the FDIC’s 

estimate of the burden of the collection 

of information; 

(c) Ways to enhance the quality, 

utility, and clarity of the information to 

be collected; 

(d) Ways to minimize the burden of 

the collection on respondents, including 

through the use of automated collection 

techniques or other forms of information 

technology; 

(e) Estimates of capital or start-up 

costs and costs of operation, 

maintenance, and purchase of services 

to provide information; and 

(f) The ability of FDIC-supervised 

banks and thrifts with assets greater 

than $50 billion to provide the 

requested information to the FDIC by 

January, 2013. 

Dated at Washington, DC, this 23rd day of 

August 2012. 

Federal Deposit Insurance Corporation 

Valerie J. Best, 

Assistant Executive Secretary. 

[FR Doc. 2012–21417 Filed 8–29–12; 8:45 am] 

BILLING CODE 6714–01–P 

FEDERAL FINANCIAL INSTITUTIONS 

EXAMINATION COUNCIL 

[Docket No. AS12–16] 

Appraisal Subcommittee; Proposed 

Policy Statements 

AGENCY: Appraisal Subcommittee of the 

Federal Financial Institutions 

Examination Council 

ACTION: Proposed policy statements and 

request for comments. 

SUMMARY: The Appraisal Subcommittee 

(ASC) of the Federal Financial 

Institutions Examination Council 

requests public comment on a proposal 

to revise ASC Policy Statements 

(proposed Policy Statements). The 

proposed Policy Statements provide 

guidance to ensure State appraiser 

regulatory programs (Program) 1 comply 

with Title XI of the Financial 

Institutions Reform, Recovery, and 

Enforcement Act of 1989, as amended. 

The proposed Policy Statements would 

supersede the current ASC Policy 

Statements. 

DATES: Comments must be received on 

or before October 29, 2012. 

ADDRESSES: You may submit comments, 

identified by any of the following 

methods: 

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52722 Federal Register / Vol. 77, No. 169 / Thursday, August 30, 2012 / Notices 

2The ASC Board is comprised of seven members. 

Five members are designated by the heads of the 

FFIEC agencies (Board of Governors of the Federal 

Reserve System, Consumer Financial Protection 

Bureau, Federal Deposit Insurance Corporation, 

Office of the Comptroller of the Currency, and 

National Credit Union Administration). The other 

two members are designated by the heads of the 

Department of Housing and Urban Development 

and the Federal Housing Finance Agency. 

3Refers to any real estate related financial 

transaction which: (a) a federal financial 

institutions regulatory agency engages in, contracts 

for, or regulates; and (b) requires the services of an 

appraiser. (See Title XI § 1121 (4), 12 U.S.C. 3350.) 

4The ASC has issued two Bulletins notifying 

State Programs of statutory requirements brought 

about by the Title XI amendments resulting from 

the Dodd-Frank Act: 

1. Bulletin 10–1, issued October 14, 2010, notified 

States that the ASC approved a modification of the 

annual National Registry fee to $40 from $25. To 

provide a reasonable transition period for 

implementation by the States, the fee increase 

became effective on January 1, 2012. 

2. Bulletin No. 2011–01, issued March 18, 2011, 

addressed new requirements concerning 

reciprocity, qualification requirements for State 

licensed appraisers, minimum requirements for 

trainee appraisers and supervisory appraisers, 

course approval program of the Appraisal 

Foundation’s AQB, and funding and staffing of 

State Programs. 

• Federal eRulemaking Portal: http:// 

www.regulations.gov. Follow the 

instructions for submitting comments. 

• E-Mail: webmaster@asc.gov. Include 

the docket number in the subject line of 

the message. 

• Fax: (202) 289–4101. Include 

docket number on fax cover sheet. 

• Mail: Address to Appraisal 

Subcommittee, Attn Lori Schuster, 1401 

H Street NW., Suite 760, Washington, 

DC 20005. 

All public comments will be made 

available on the ASC’s Web site at 

http://www.asc.gov (follow link in 

‘‘What’s New’’) as submitted, unless 

modified for technical reasons. 

Accordingly, comments will not be 

edited to remove any personal 

identifying or contact information. 

FOR FURTHER INFORMATION CONTACT: 

James R. Park, Executive Director, at 

(202) 595–7575, or Alice M. Ritter, 

General Counsel, at (202) 595–7577, via 

Internet email at jim@asc.gov and 

alice@asc.gov, respectively, or by U.S. 

Mail at Appraisal Subcommittee, 1401 

H Street NW., Suite 760, Washington, 

DC 20005. 

SUPPLEMENTARY INFORMATION: 

I. Background 

Title XI of the Financial Institutions 

Reform, Recovery, and Enforcement Act 

of 1989, as amended (Title XI), 

established the ASC.2 The purpose of 

Title XI is to provide protection of 

Federal financial and public policy 

interests by upholding Title XI 

requirements for appraisals performed 

for federally related transactions.3

Pursuant to Title XI, the ASC performs 

periodic Compliance Reviews of each 

State’s Program to: 

• Determine its compliance, or lack 

thereof, with Title XI, and 

• Assess its implementation of the 

Real Property Appraiser Qualification 

Criteria (AQB Criteria), as adopted by 

the Appraiser Qualifications Board 

(AQB). 

The ASC originally adopted the 

Policy Statements in 1993. In 1997, the 

ASC added Policy Statements governing 

temporary practice and reciprocity. 

Since 1997, the Policy Statements have 

remained largely unchanged with the 

exception of amendments made by the 

ASC in 2008 to Policy Statement 10, 

Enforcement. Two recent occurrences 

necessitated revision of the Policy 

Statements: 

1. Passage of the Dodd-Frank Wall 

Street Reform and Consumer Protection 

Act (Dodd-Frank Act); and 

2. ASC implementation of its revised 

Compliance Review process in 2009. 

States have already begun the process 

of implementing numerous statutory 

changes brought about by the DoddFrank Act.4 The proposed Policy 

Statements reflect both Dodd-Frank Act 

provisions that have been implemented 

by the States as well as provisions that 

are in process. As part of the revised 

Compliance Review process in 2009, the 

ASC changed the format of the 

Compliance Review Report issued to the 

States after the ASC completes its onsite review of a State’s Program. The 

Compliance Review Report presents the 

findings of the ASC’s on-site review of 

a State’s Program, including areas of 

non-compliance with Title XI and 

recommendations for improvement. 

The proposed Policy Statements are 

intended to provide States with the 

necessary information to maintain their 

Programs in compliance with Title XI. 

Further, the proposed Policy Statements 

address the ASC’s authority to evaluate 

a State Program for compliance with 

Title XI and to take sanctions against a 

State when its Program does not comply 

with Title XI. The proposal also 

excludes provisions from the current 

Policy Statements that have become 

outdated or lack enforceability. 

Additionally, the proposal reflects 

consideration of recent amendments to 

the Uniform Standards of Professional 

Appraisal Practice (USPAP) and the 

AQB Criteria. 

II. Summary of the Proposed Policy 

Statements 

Proposed Policy Statements 1 thru 7 

correspond with the seven categories 

evaluated during the ASC’s Compliance 

Review process and included in the 

ASC Compliance Review Report to a 

State. Proposed Policy Statement 8 sets 

forth procedures in the event the ASC 

imposes interim sanctions against a 

State. The proposal also includes four 

appendices: 

1. Appendix A provides an overview 

of the Compliance Review process and 

a revised rating system; 

2. Appendix B provides a summary of 

requirements and related 

implementation standards for each 

Policy Statement; 

3. Appendix C provides a glossary of 

terms; and 

4. Appendix D contains previously 

issued ASC Bulletins and Supplements 

that provided States with guidance on 

compliance with the self-enabling 

provisions of the Dodd-Frank Act, 

including the effective date by which a 

State needed to take action. 

III. Statement-by-Statement Analysis 

The following provides a statementby-statement analysis highlighting the 

changes to the current Policy Statements 

reflected in the proposal. 

Introduction and Purpose 

The proposal’s introduction and 

purpose statement provides a brief 

overview of the ASC’s authority and its 

monitoring function of State Programs 

to determine compliance, or lack 

thereof, with Title XI. Much of the 

explanatory language in the current 

Policy Statements, regarding functions 

of the ASC and the establishment of 

State Programs, is well known and 

presented in the ASC Annual Report to 

Congress and, therefore, is being 

omitted from the proposal. The proposal 

focuses rather on the Policy Statements’ 

goal to provide States with necessary 

information to maintain their Programs 

in compliance with Title XI. 

Policy Statement 1: Statutes, 

Regulations, Policies and Procedures 

Governing State Programs 

Proposed Policy Statement 1 will 

consolidate and replace the first four 

current Policy Statements (State 

Regulatory Structure and Independence 

of Functions; Appraiser Classifications; 

Appraisal Standards; Written Appraisal 

Reports) and replaces Policy Statement 

7 (Prohibition Against Discrimination). 

Policy Statement 1 will address the first 

area of review in the ASC Compliance 

Review process of a State Program’s 

statutes, regulations, policies and 

procedures for compliance with Title 

XI. 

Since State Programs are now 

established, much of the language in the 

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Federal Register / Vol. 77, No. 169 / Thursday, August 30, 2012 / Notices 52723 

current Policy Statements with 

instructions on the initial establishment 

of an appraiser licensing and 

certification program has been 

eliminated. The proposal does preserve 

essential language concerning 

independence and ethical standards 

with deference given to State standards. 

The proposal reflects the authority the 

Dodd-Frank Act granted the ASC to 

review State Programs for adequate 

funding and staffing. The proposal also 

addresses the discussion on appraiser 

classifications, addressing the DoddFrank Act provisions concerning 

licensed level appraisers, as well as 

trainees and supervisors, and outdated 

language has been removed. The 

proposal also addresses the other 

credential designations used by States 

that should be distinguished from the 

federally recognized credentials. The 

discussion on the guidance issued by 

Federal financial institutions regulatory 

agencies and the statutory requirements 

outside of Title XI in the current Policy 

statements has been eliminated in 

deference to those provisions standing 

on their own. The proposal reflects an 

amendment to the current Policy 

Statements discussion on prohibiting 

discrimination to reflect the Dodd-Frank 

Act provision that allows criteria 

established by the Federal financial 

institutions regulatory agencies for 

appraiser qualifications to include 

membership in a nationally recognized 

professional appraisal organization. 

The proposal addresses attendance by 

ASC Policy Managers at States’ closed/ 

executive sessions. The proposal 

explains how attendance at such 

meetings, except in the case of ‘‘quasijudicial’’ proceedings specifically 

authorized by State statute, is an 

essential part of the ASC’s monitoring 

function. 

Policy Statement 2: Temporary Practice 

Proposed Policy Statement 2 will 

replace the current Policy Statement 5 

(Temporary Practice) and will address 

the second area of review in the ASC 

Compliance Review process pertaining 

to temporary practice for compliance 

with Title XI. 

Proposed Policy Statement 2 provides 

a clear explanation of what the ASC will 

consider to determine whether a State’s 

fees or requirements are excessive or 

burdensome to an appraiser’s ability to 

work in a State on a temporary basis 

relative to the State’s cost of processing 

and issuing a temporary practice 

credential. Burdensome requirements 

are specified separately for the ‘‘Home 

State agency’’ and the ‘‘Host State.’’ The 

proposal reflects that a fee for an initial 

permit and one extension in excess of 

$250 is an excessive fee. The ASC 

acknowledges that the current Policy 

Statement set the maximum fee of $150 

in 1997 and recognizes that States’ costs 

have increased over time. Using the 

Consumer Price Index Inflation 

Calculator from the U.S. Department of 

Labor, Bureau of Labor Statistics, the 

change in prices of all goods and 

services at a $150 fee in 1997 equaled 

about a $215 fee as of July 2012. The 

ASC considered this information and 

based the proposed maximum fee of 

$250 on revised Policy Statement 2 

becoming final in 2012, and remaining 

in effect for several years. 

The language in current Policy 

Statement 5 concerning the 

requirements of an appraiser to register 

for temporary practice in a State to 

perform a ‘‘technical review’’ is not 

included in the proposal. The ASC 

believes that text is outdated and 

unnecessary. 

Policy Statement 3: National Registry 

Proposed Policy Statement 3 will 

replace the current Policy Statement 8 

(National Registry of State Certified and 

Licensed Appraisers) and Policy 

Statement 9 (Information Sharing), and 

will address the third area of review in 

the ASC Compliance Review process of 

a State Program’s policies and practices 

pertaining to the ASC’s National 

Registry for compliance with Title XI. 

Proposed Policy Statement 3 

addresses several Dodd-Frank Act 

amendments to Title XI concerning 

appraiser classifications and States’ ASC 

National Registry reporting 

requirements. Several provisions in the 

current Policy Statements concerning 

the ASC National Registry are being 

updated or removed to reflect current 

ASC procedures. The proposal includes 

a discussion on the ASC National 

Registry’s extranet application and 

security requirements for States 

(including designation of an Authorized 

Registry Official and adoption of a 

written policy to adequately protect the 

right of access, as well as the ASC 

issued UserName and Password). The 

proposal preserves the critical nature of 

information sharing among the States 

with regard to disciplinary actions taken 

against appraisers. The proposal 

requires States to notify the ASC as soon 

as practicable if it is determined that a 

credential holder listed on the National 

Registry does not, or did not, qualify for 

the credential held. The proposal also 

requires States to notify the ASC as soon 

as practicable in the event of voluntary 

surrenders, suspensions and 

revocations, or any action that 

interrupts a credential holder’s ability to 

practice. Further, the proposal requires 

States to submit all ‘‘disciplinary 

actions’’ (as defined in the proposed 

Policy Statement) to the ASC via the 

extranet application for inclusion on the 

National Registry as of July 1, 2013. 

Policy Statement 4: Application Process 

Proposed Policy Statement 4 will 

replace numerous provisions in the 

current Policy Statement 10 

(Enforcement) and will address the 

fourth area of review in the ASC 

Compliance Review process pertaining 

to a State Program’s application process 

for compliance with Title XI. 

Proposed Policy Statement 4 

addresses requirements for: 

(1) State’s general processing of 

applications for an appraiser credential; 

(2) An appraiser’s qualifying 

education, including a State’s 

verification that an applicant’s 

education complies with AQB Criteria, 

and for verification and audit of an 

appraiser’s continuing education credits 

for license and certification renewals; 

(3) An applicant’s compliance with 

AQB Criteria experience requirements, 

including the State’s review and 

validation of an applicant’s experience 

claims on initial credential or upgrade 

applications; and 

(4) State’s use and administration of 

an appropriate AQB-approved 

qualifying examination. 

The proposed Policy Statement 4 is 

structured according to the type of 

application being processed (that is, an 

initial, upgrade, reinstatement, or 

renewal application). The proposal also 

includes a discussion on the procedures 

that a State should have concerning the 

verification, validation and audit of 

information in applications. 

Policy Statement 5: Reciprocity 

Proposed Policy Statement 5 will 

replace current Policy Statement 6 

(Reciprocity) and will address the fifth 

area of review in the ASC Compliance 

Review process of a State Program’s 

reciprocity policy for compliance with 

Title XI. 

Proposed Policy Statement 5 sets forth 

the new reciprocity requirements 

mandated by the Dodd-Frank Act, and 

consequences to a State that fails to 

comply. Policy Statement 5 also 

provides examples of a State’s 

implementation of a reciprocity process. 

Title XI now requires that in order for 

a State’s appraisers to be eligible to 

perform appraisals for federally related 

transactions, the State must have a 

reciprocity policy in place that will 

require issuance of a reciprocal 

credential IF: 

1. the appraiser is coming from a State 

that is ‘‘in compliance’’; 

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52724 Federal Register / Vol. 77, No. 169 / Thursday, August 30, 2012 / Notices 

5See below, Appendix A of the proposed Policy 

Statements, Compliance Review Process, for an 

explanation of ASC Findings. 6Title XI § 1118(a), 12 U.S.C. 3347. 

2. the appraiser holds a valid 

credential from that State; and 

3. the credentialing requirements of 

that State (as they currently exist) meet 

or exceed those of the reciprocal 

credentialing State (as they currently 

exist). 

Therefore, the proposal explains that 

appraisers relying on a credential from 

a State that does not have a compliant 

reciprocity policy in place are not 

eligible to perform appraisals for 

federally related transactions. A State 

may have a more lenient or more open 

door policy; however, States cannot 

impose additional impediments to 

issuance of reciprocal credentials. For 

purposes of implementing the DoddFrank Act’s reciprocity requirements 

and considering the proposed rating 

criteria in Appendix A, States with an 

ASC Finding 5 of ‘‘Poor’’ would not 

satisfy the ‘‘in compliance’’ provision 

for reciprocity. Further, as explained in 

the proposal, States would not be 

required to grant a reciprocal credential 

to an appraiser credentialed in another 

State with a current ASC Finding of 

‘‘Poor.’’ On March 18, 2011, the ASC 

issued Bulletin No. 2011–01 to States 

that as of July 1, 2013, a State will be 

evaluated by the ASC for compliance 

with the new reciprocity requirements. 

Policy Statement 6: Education 

Proposed Policy Statement 6 adds 

new discussion that is not in the current 

Policy Statements and will address the 

sixth area of review in the ASC 

Compliance Review process of a State 

Program’s administration of education 

requirements for compliance with AQB 

Criteria and Title XI. 

Proposed Policy Statement 6 provides 

States with specific requirements 

regarding course approval, including the 

approval of distance education courses 

(e.g., on-line courses), and refers to 

discussion in proposed Policy 

Statement 4 concerning qualifying and 

continuing education in the application 

process. As required by the Dodd-Frank 

Act, the proposal encourages States to 

accept courses approved by the AQB’s 

Course Approval Program. 

Policy Statement 7: State Agency 

Enforcement 

Proposed Policy Statement 7 will 

replace several provisions in current 

Policy Statement 10 (Enforcement) and 

will address the seventh area of review 

in the ASC Compliance Review process 

of a State Program’s administration of its 

enforcement program for compliance 

with Title XI. 

Proposed Policy Statement 7 provides 

States with specific requirements to 

demonstrate that they are operating an 

effective and compliant enforcement 

program in addressing complaints 

against an appraiser. The proposed 

Policy Statement 7 addresses 

expectations for enforcement regarding: 

(1) Timeliness of complaint 

investigations and initiating 

enforcement action; (2) effectiveness of 

a State’s enforcement process; (3) 

consistent and equitable treatment of an 

appraiser in the State’s enforcement 

process; and (4) appropriate complaint 

documentation in a State’s enforcement 

records, including specific requirements 

for tracking complaints of alleged 

appraiser misconduct or wrongdoing 

using an electronic complaint log. 

Policy Statement 8: Interim Sanctions 

Proposed Policy Statement 8 

establishes a new ASC policy that 

addresses interim sanction authority the 

Dodd-Frank Act granted the ASC, and 

outlines due process considerations in 

the event the ASC exercises such 

authority. 

Pursuant to the Dodd-Frank Act, the 

ASC has the authority to impose interim 

actions and suspensions against a State 

agency as an alternative to or in advance 

of a non-recognition proceeding against 

a State agency that fails to have an 

effective Program.6 The ASC is 

proposing that an ‘‘ASC Finding’’ of 

‘‘Poor’’ on a State’s Compliance Review 

Report would indicate that the State’s 

Program is failing and, in turn, would 

trigger an analysis by the ASC for 

potential interim sanction. The DoddFrank Act’s interim sanction authority 

specifically authorizes the ASC to 

remove a State licensed or certified 

appraiser from the National Registry on 

an interim basis, not to exceed 90 days, 

pending State agency action on 

licensing, certification, registration, or 

disciplinary proceedings. The proposed 

Policy Statement 8 addresses due 

process procedures that would provide 

a State with an opportunity to be heard 

or to correct conditions before the ASC 

imposes an interim sanction. 

Appendices 

The proposal includes four 

appendices. Proposed Appendix A 

provides an overview of the Compliance 

Review process, including revised ASC 

Compliance Review Findings (referred 

to as ASC Findings in this appendix) for 

rating a State’s compliance, or lack 

thereof, with Title XI. The proposed 

ASC Findings rating criteria places 

particular emphasis on whether the 

State is maintaining an effective 

regulatory Program in compliance with 

Title XI. At the conclusion of the 

Compliance Review process, the ASC 

would assign the State’s Program one of 

the five proposed ASC Findings (that is, 

a State’s Program would be either 

‘‘Excellent,’’ ‘‘Good,’’ ‘‘Needs 

Improvement,’’ ‘‘Not Satisfactory,’’ or 

‘‘Poor’’). As proposed, the ASC also 

would use the ASC Finding to establish 

the Review Cycle for that State. 

Proposed Appendix B provides a 

summary of requirements and related 

implementation standards for each of 

the proposed Policy Statements. 

Proposed Appendix C provides a 

glossary of terms to aid in the reading 

of the proposed Policy Statements. 

Proposed Appendix D will contain the 

ASC Bulletins and Supplements that 

have already been issued to assist States 

in understanding and complying with 

the self-enabling provisions of the 

Dodd-Frank Act. 

IV. Request for Comment 

The ASC seeks comment on all 

aspects of the revised Policy Statements, 

including any potential burden or cost 

to the States to comply with these 

Policy Statements. In addition, the ASC 

requests comments on the following 

specific questions: 

1. Do the proposed rating criteria in 

Appendix A provide sufficient clarity to 

understand the differences among the 

ASC Finding categories? 

2. Do the ASC Finding categories 

appropriately identify the degree of 

perceived risk of a Program’s potential 

failure? 

3. Do the ASC Finding rating criteria 

provide enough information to explain 

the judgment factors that the ASC will 

use to assess whether a State is in 

compliance with Title XI? 

4. Do the revised Policy Statements 

achieve the ASC’s goal in improving the 

understandability and enforceability of 

Title XI and the AQB Criteria? 

5. Do the revised Policy Statements 

provide State Programs with the 

necessary information to understand the 

ASC’s expectations of the Program 

during a Compliance Review? 

The text of the proposed Policy 

Statements is as follows: 

Table of Contents 

Introduction and Purpose 

Policy Statement 1 

Statutes, Regulations, Policies and 

Procedures Governing State Programs 

A. State Regulatory Structure 

B. Funding and Staffing 

C. Minimum Criteria 

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Federal Register / Vol. 77, No. 169 / Thursday, August 30, 2012 / Notices 52725 

7The ASC board is made up of seven members. 

Five members are designated by the heads of the 

FFIEC agencies (Board of Governors of the Federal 

Reserve System, Consumer Financial Protection 

Bureau, Federal Deposit Insurance Corporation, 

Office of the Comptroller of the Currency, and 

National Credit Union Administration). The other 

two members are designated by the heads of the 

Department of Housing and Urban Development 

and the Federal Housing Finance Agency. 

8See Appendix C, Glossary of Terms, for the 

definition of ‘‘State.’’ 

9See Appendix C, Glossary of Terms, for the 

definition of ‘‘federally related transaction.’’ 

10See Appendix A, Compliance Review Process. 

11The four Territories are the Commonwealth of 

Puerto Rico, Commonwealth of the Northern 

Mariana Islands, Guam, and United States Virgin 

Islands. 

12These Policy Statements, adopted 

llllll, 2012, supersede all previous Policy 

Statements adopted by the ASC, the most recent 

version of which was issued in October 2008. 

13Title XI § 1118(a), 12 U.S.C. 3347. 

14See Appendix C, Glossary of Terms, for the 

definition of ‘‘State board.’’ 

15See Appendix D, Bulletin 2011–01. 

D. Federally Recognized Appraiser 

Classifications 

E. Non-Federally Recognized Credentials 

F. Appraisal Standards 

G. Prohibition Against Discrimination 

H. Exemptions 

I. ASC Staff Attendance at State Board 

Meetings 

J. Summary of Requirements 

Policy Statement 2 

Temporary Practice 

A. Requirement for Temporary Practice 

B. Excessive Fees or Burdensome 

Requirements 

C. Summary of Requirements 

Policy Statement 3 

National Registry 

A. Requirements for the National Registry 

B. Registry Fee and Invoicing Policies 

C. Access to National Registry Data 

D. Information Sharing 

E. Summary of Requirements 

Policy Statement 4 

Application Process 

A. Processing of Applications 

B. Qualifying Education for Initial or 

Upgrade Applications 

C. Continuing Education for Reinstatement 

and Renewal Applications 

D. Experience for Initial or Upgrade 

Applications 

E. Examination 

F. Summary of Requirements 

Policy Statement 5 

Reciprocity 

A. Reciprocity Policy 

B. Application of Reciprocity Policy 

C. Appraiser Compliance Requirements 

D. Summary of Requirements 

Policy Statement 6 

Education 

A. Course Approval 

B. Distance Education 

C. Summary of Requirements 

Policy Statement 7 

State Agency Enforcement 

A. State Agency Regulatory Program 

B. Enforcement Process 

C. Summary of Requirements 

Policy Statement 8 

Interim Sanctions 

A. Authority 

B. Interim Sanctions 

C. Opportunity To Be Heard or Correct 

Conditions 

D. Procedures 

Appendix A—Compliance Review Process 

Appendix B—Summary of Requirements 

Appendix C—Glossary of Terms 

Appendix D—ASC Bulletins and 

Supplements 

Introduction and Purpose 

Title XI of the Financial Institutions 

Reform, Recovery, and Enforcement Act 

of 1989 (FIRREA), as amended (Title 

XI), established the Appraisal 

Subcommittee of the Federal Financial 

Institutions Examination Council 

(ASC).7 The purpose of Title XI is to 

provide protection of Federal financial 

and public policy interests by 

upholding Title XI requirements for 

appraisals performed for federally 

related transactions. Specifically those 

appraisals shall be performed in writing, 

in accordance with uniform standards, 

by individuals whose competency has 

been demonstrated and whose 

professional conduct will be subject to 

effective supervision. 

Pursuant to Title XI, one of the ASC’s 

core functions is to monitor the 

requirements established by the States 8

for certification and licensing of 

appraisers qualified to perform 

appraisals in connection with federally 

related transactions.9 The ASC performs 

periodic Compliance Reviews 10 of each 

State appraiser regulatory program 

(Program) to determine compliance, or 

lack thereof, with Title XI, and to assess 

the Program’s implementation of the 

Real Property Appraiser Qualification 

Criteria (AQB Criteria) as adopted by the 

Appraiser Qualifications Board (AQB). 

The 50 States, District of Columbia, and 

four Territories 11 have State appraiser 

certifying and licensing agencies (State 

agency or State) monitored by the ASC 

through the Compliance Review 

process. 

Pursuant to authority granted to the 

ASC under Title XI, the ASC is issuing 

these Policy Statements 12 to provide 

States with the necessary information to 

maintain their Programs in compliance 

with Title XI. Policy Statements 1 

through 7 correspond with the 

categories that are evaluated during the 

Compliance Review process and 

included in the ASC Compliance 

Review Report (Report). Policy 

Statement 8 entitled Interim Sanctions 

sets forth required procedures in the 

event that interim sanctions are 

imposed against a State by the ASC. 

Policy Statement 1 

Statutes, Regulations, Policies and 

Procedures Governing State Programs 

A. State Regulatory Structure 

Title XI requires the ASC to monitor 

State agencies for the purpose of 

determining whether they have policies, 

practices and procedures consistent 

with Title XI.13 The ASC recognizes that 

each State may have legal, fiscal, 

regulatory or other factors that may 

influence the structure and organization 

of its Program. Therefore, a State has 

flexibility to structure its Program so 

long as it meets Title XI-related 

responsibilities. 

States should maintain an 

organizational structure for appraiser 

certification, licensing and supervision 

that avoids conflicts of interest with 

other real estate-related professions. A 

State agency may be headed by a board, 

commission or an individual. State 

board 14 or commission members, or 

employees in policy or decision-making 

positions, should understand and 

adhere to State statutes and regulations 

governing performance of 

responsibilities consistent with the 

highest ethical standards for public 

service. In addition, Programs using 

private entities or contractors should 

establish appropriate internal policies, 

procedures, and safeguards to promote 

compliance with the State agency’s 

responsibilities under Title XI and these 

Policy Statements. 

B. Funding and Staffing 

The Dodd-Frank Wall Street Reform 

and Consumer Protection Act (DoddFrank Act) amended Title XI to require 

the ASC to determine whether States 

have sufficient funding and staffing to 

meet their Title XI requirements.15 On 

July 1, 2011, as part of its Compliance 

Review process, the ASC formally began 

requesting information and supporting 

documentation regarding funding and 

staffing of Programs. Compliance with 

this provision requires that a State must 

provide its Program with funding and 

staffing sufficient to carry out its Title 

XI-related duties. The ASC evaluates the 

sufficiency of funding and staffing as 

part of its review of all aspects of a 

Program’s effectiveness, including the 

adequacy of State boards, committees, 

or commissions responsible for carrying 

out Title XI-related duties. 

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16See Appendix D, Bulletin 2011–01. 

17See Appendix D, Supplement to Bulletin 2011– 

01. 

18See Appendix D, Bulletin 2011–01. 

19See Appendix C, Glossary of Terms, for the 

definition of ‘‘non-federally recognized credentials 

or designations.’’ 

20See Appendix C, Glossary of Terms for the 

definition of ‘‘Uniform Standards of Professional 

Appraisal Practice’’. 

21Title XI § 1122(d), 12 U.S.C. 3351. 

22Title XI § 1112, 12 U.S.C. 3341; Title XI § 1113, 

12 U.S.C. 3342; Title XI § 1114, 12 U.S.C. 3343. 

C. Minimum Criteria 

Title XI requires States to adopt and/ 

or implement all relevant AQB Criteria. 

Historically, requirements established 

by a State for certified residential or 

certified general classifications have 

been required to meet or exceed AQB 

Criteria. Effective July 1, 2013, 

requirements established by a State for 

licensed appraisers, as well as for 

trainee and supervisory appraisers, must 

also meet or exceed the AQB Criteria, as 

required by the Dodd-Frank Act.16

D. Federally Recognized Appraiser 

Classifications 

1. State Certified Appraisers 

‘‘State certified appraisers’’ means 

those individuals who have satisfied the 

requirements for residential or general 

certification in a State whose criteria for 

certification meet or exceed the 

minimum AQB Criteria. Permitted 

scope of practice and designation for 

State certified residential or certified 

general appraisers must be consistent 

with State and Federal laws, including 

regulations and supplementary 

guidance. 

2. State Licensed Appraisers 

As of July 1, 2013, ‘‘State licensed 

appraisers’’ means those individuals 

who have satisfied the requirements for 

licensing in a State whose criteria for 

licensing meet or exceed the minimum 

AQB Criteria.17 Effective July 1, 2013, 

the permitted scope of practice and 

designation for State licensed appraisers 

must be consistent with State and 

Federal laws, including regulations and 

supplementary guidance. 

3. Trainee Appraiser and Supervisory 

Appraiser 

As of July 1, 2013, any minimum 

qualification requirements established 

by a State for individuals in the position 

of ‘‘trainee appraiser’’ and ‘‘supervisory 

appraiser’’ must meet or exceed the 

minimum AQB Criteria.18 ASC staff will 

evaluate State designations such as 

‘‘registered appraiser,’’ ‘‘apprentice 

appraiser,’’ ‘‘provisional appraiser,’’ or 

any other similar designation to 

determine if, in substance, such 

designation is consistent with a ‘‘trainee 

appraiser’’ designation and, therefore, 

administered to comply with Title XI. 

Effective July 1, 2013, the permitted 

scope of practice and designation for 

trainee appraisers and supervisory 

appraisers must be consistent with State 

and Federal laws, including regulations 

and supplementary guidance. 

Any State or Federal agency may 

impose additional appraiser 

qualification requirements for State 

licensed, certified residential or 

certified general classifications, or for 

trainee and supervisor classifications, if 

they consider such requirements 

necessary to carry out their 

responsibilities under Federal and/or 

State statutes and regulations, so long as 

the additional qualification 

requirements do not conflict with AQB 

Criteria. 

E. Non-Federally Recognized 

Credentials 

States using non-federally recognized 

credentials or designations 19 should 

ensure that they can be easily 

distinguished from the federally 

recognized credentials. 

F. Appraisal Standards 

Title XI and the Federal financial 

institutions regulatory agencies’ 

regulations mandate that all appraisals 

performed in connection with federally 

related transactions be in written form, 

prepared in accordance with generally 

accepted appraisal standards as 

promulgated by the Appraisal Standards 

Board (ASB) in the Uniform Standards 

of Professional Appraisal Practice 

(USPAP), and subject to review for 

compliance with USPAP.20 States that 

have incorporated USPAP into State law 

should ensure that statutes or 

regulations are updated timely to adopt 

the latest version of USPAP, or if State 

law allows, automatically incorporate 

the latest version of USPAP. States 

should consider ASB Advisory 

Opinions, Frequently Asked Questions, 

and other written guidance issued by 

the ASB regarding interpretation and 

application of USPAP. 

Any State or Federal agency may 

impose additional appraisal standards if 

they consider such standards necessary 

to carry out their responsibilities, so 

long as additional appraisal standards 

do not conflict with USPAP for work 

performed for federally related 

transactions. 

G. Prohibition Against Discrimination 

Title XI prohibits excluding 

appraisers from consideration for an 

assignment solely by virtue of their lack 

of membership in a nationally 

recognized professional appraisal 

organization.21 Moreover, the appraisal 

regulations of the Federal financial 

institutions regulatory agencies address 

the selection of an appraiser, 

considering appraiser independence, 

professional association membership, 

and competency. With regard to 

membership in a nationally recognized 

professional appraisal organization, the 

agencies’ regulations prohibit a federally 

regulated financial institution from 

excluding an appraiser from 

consideration for an assignment solely 

by virtue of a membership or lack of 

membership in a particular 

organization. Such discrimination is 

also inappropriate by States in the 

administration of their Programs. 

H. Exemptions 

Title XI and the Federal financial 

institutions regulatory agencies’ 

regulations specifically require the use 

of only State certified or licensed 

appraisers in connection with the 

appraisal of certain real estate-related 

financial transactions.22 A State may not 

exempt any individual or group of 

individuals from meeting the State’s 

certification or licensing requirements if 

the individual or group member 

performs an appraisal when Federal 

statutes and regulations require the use 

of a certified or licensed appraiser. For 

example, an individual who has been 

exempted by the State from its appraiser 

certification or licensing requirements 

because he or she is an officer, director, 

employee or agent of a federally 

regulated financial institution would 

not be permitted to perform an appraisal 

in connection with a federally related 

transaction. States with exemption 

provisions must take steps to ensure 

that the provisions are not being used or 

interpreted in this manner. 

I. ASC Staff Attendance at State Board 

Meetings 

As part of the on-site Compliance 

Review process, ASC staff regularly 

attends State board meetings, including 

executive and/or closed sessions. States 

are expected to permit ASC staff to 

attend State board meetings except in 

the case of closed sessions for ‘‘quasijudicial’’ proceedings specifically 

authorized and defined by State statute 

or regulation. The efficacy of the ASC’s 

Compliance Review process rests on the 

ASC’s ability to obtain reliable 

information about all areas of a State’s 

Program. ASC staff is obligated to 

protect information obtained during the 

Compliance Review process concerning 

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23See Appendix C, Glossary of Terms, for the 

definition of ‘‘assignment.’’ 

24See Appendix C, Glossary of Terms, for the 

definition of ‘‘credentialed appraisers.’’ 

25Title XI § 1122(a) (2), 12 U.S.C. 3351. 

26See Appendix C, Glossary of Terms, for the 

definition of ‘‘home State agency.’’ 

27State agencies may establish by statute or 

regulation a policy that places reasonable limits on 

the number of times an out-of-State certified or 

licensed appraiser may exercise his or her 

temporary practice rights in a given year. If such a 

policy is not established, a State agency may choose 

not to honor an out-of-State certified or licensed 

appraiser’s temporary practice rights if it has made 

a determination that the appraiser is abusing his or 

her temporary practice rights and is regularly 

engaging in real estate appraisal services within the 

State. 

28Title XI § 1103(a)(3), 12 U.S.C. 3332. 

29Title XI § 1109, Roster of State certified or 

licensed appraisers; authority to collect and 

transmit fees, requires the ASC to consider at least 

once every 5 years whether to adjust the dollar 

amount of the registry fees to account for inflation. 

(Title XI § 1109(a), 12 U.S.C. 3338.) 

the privacy of individuals and any 

confidential matters. 

J. Summary of Requirements 

Appendix B provides a summary of 

requirements and related 

implementation standards for each 

Policy Statement. The summary of 

requirements and implementation 

standards sets forth expectations for a 

State to demonstrate that its Program 

meets Title XI mandates. 

Policy Statement 2 

Temporary Practice 

A. Requirement for Temporary Practice 

Title XI requires State agencies to 

recognize, on a temporary basis, the 

certification or license of an out-of-State 

appraiser entering the State for the 

purpose of completing an appraisal 

assignment 23 for a federally related 

transaction. The out-of-State appraiser 

must register with the State agency in 

the State of temporary practice (host 

State). Thus, a credentialed appraiser 24

from State A has a statutory right to 

enter State B to perform an assignment 

concerning a federally related 

transaction, so long as the appraiser 

registers with the State agency in State 

B prior to performing the assignment. 

Though Title XI contemplates 

reasonably free movement of 

credentialed appraisers across State 

lines, an out-of-State appraiser must 

comply with the host State’s real estate 

appraisal statutes and regulations and is 

subject to the host State’s full regulatory 

jurisdiction. States should rely on the 

National Registry to verify credential 

history on applicants for temporary 

practice. 

State agencies may establish by 

statute or regulation a policy that places 

reasonable limits on the number of 

times an out-of-State certified or 

licensed appraiser may exercise his or 

her temporary practice rights in a given 

year. If a State does not have an 

established policy, a State agency may 

choose to refuse to honor an out-of-State 

certified or licensed appraiser’s 

temporary practice rights when a State 

has determined that the appraiser is 

abusing his or her temporary practice 

rights and is regularly engaging in real 

estate appraisal within the State. 

B. Excessive Fees or Burdensome 

Requirements 

Title XI prohibits States from 

imposing excessive fees or burdensome 

requirements, as determined by the 

ASC, for temporary practice.25

Adherence by State agencies to the 

following mandates and prohibitions 

will deter the imposition of excessive 

fees or burdensome requirements. 

1. Host State agencies must: 

a. Issue temporary practice permits on 

an assignment basis; 

b. Issue temporary practice permits 

within five business days of receipt of 

a completed application, or notify the 

applicant and document the file as to 

the circumstances justifying delay or 

other action; 

c. Issue temporary practice permits 

designating the actual date of issuance; 

d. Take regulatory responsibility for a 

temporary practitioner’s unethical, 

incompetent and/or fraudulent practices 

performed while in the State; 

e. Notify the appraiser’s home State 

agency26 in the case of disciplinary 

action concerning a temporary 

practitioner; and 

f. Allow at least one temporary 

practice permit extension through a 

streamlined process. 

2. Host State agencies may not: 

a. Limit the valid time period of a 

temporary practice permit to less than 6 

months, except in the case of an 

appraiser not holding a credential in 

active status for at least that period of 

time; 

b. Limit an appraiser to one temporary 

practice permit per calendar year; 27

c. Charge a temporary practice permit 

fee exceeding $250, including one 

extension fee; 

d. Impose State appraiser 

qualification requirements upon 

temporary practitioners that exceed 

AQB Criteria for the credential held; 

e. Require temporary practitioners to 

obtain a certification or license in the 

State of temporary practice; 

f. Require temporary practitioners to 

affiliate with an in-State licensed or 

certified appraiser; 

g. Refuse to register licensed or 

certified appraisers seeking temporary 

practice in a State that does not have a 

licensed or certified level credential; or 

h. Prohibit temporary practice. 

3. Home State agencies may not: 

a. Delay the issuance of a written 

‘‘letter of good standing’’ or similar 

document for more than five business 

days after receipt of a request; or 

b. Fail to take disciplinary action, if 

appropriate, when one of its certified or 

licensed appraisers is disciplined by 

another State agency for unethical, 

incompetent or fraudulent practices 

under a temporary practice permit. 

C. Summary of Requirements 

Appendix B provides a summary of 

requirements and related 

implementation standards for each 

Policy Statement. The summary of 

requirements and implementation 

standards sets forth expectations for a 

State to demonstrate that its Program 

meets Title XI mandates. 

Policy Statement 3 

National Registry 

A. Requirements for the National 

Registry 

Title XI requires the ASC to maintain 

a National Registry of State certified and 

licensed appraisers who are eligible to 

perform appraisals in federally related 

transactions.28 Title XI further requires 

the States to transmit to the ASC: (1) A 

roster listing individuals who have 

received a State certification or license 

in accordance with Title XI; (2) reports 

on the issuance and renewal of licenses 

and certifications, sanctions, 

disciplinary actions, revocations and 

suspensions; and (3) the Registry fee as 

set by the ASC 29 from individuals who 

have received certification or licensing. 

States must notify the ASC upon 

determination if a credential holder 

listed on the National Registry does not, 

or did not, qualify for the credential 

held. 

Roster and Registry fee requirements 

apply to all individuals who receive 

State certifications or licenses, 

originally or by reciprocity, whether or 

not the individuals are, in fact, 

performing or planning to perform 

appraisals in federally related 

transactions. If an appraiser is certified 

or licensed in more than one State, the 

appraiser is required to be on each 

State’s roster of certified or licensed 

appraisers, and a Registry fee is due 

from each State in which the appraiser 

is certified or licensed. 

Only AQB-compliant certified 

appraisers in active status on the 

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30See Appendix D, Supplement to Bulletin 2011– 

01. 

31See Appendix C, Glossary of Terms, for the 

definition of ‘‘non-federally related transactions.’’ 

32See section D, Information Sharing, below 

requiring all States to report disciplinary action via 

the extranet application by July 1, 2013. 

33See Appendix D, Bulletin 10–1, October 14, 

2010. Under authority in the Dodd-Frank Act, the 

ASC approved a modification of the annual Registry 

fee to $40 (from $25) at its meeting of October 13, 

2010. The ASC raised the Registry fee to support its 

supervisory activities, including additional 

authority and responsibility under the Dodd-Frank 

Act. 

34See Appendix C, Glossary of Terms, for the 

definition of ‘‘disciplinary action.’’ 

National Registry are eligible to perform 

appraisals in connection with federally 

related transactions. In order for a 

licensed appraiser to be listed on the 

National Registry as AQB-compliant, 

that individual must satisfy 

requirements for licensing in a State 

whose criteria meet or exceed AQB 

Criteria. Beginning July 1, 2013, only 

AQB-compliant licensed appraisers in 

active status on the National Registry 

are eligible to perform appraisals in 

connection with federally related 

transactions.30

Some States may give State certified 

or licensed appraisers an option to not 

pay the Registry fee. If a State certified 

or licensed appraiser chooses not to pay 

the Registry fee, then the Program must 

ensure that any potential user of that 

appraiser’s services is aware that the 

appraiser’s certificate or license is 

limited to performing appraisals in 

connection with non-federally related 

transactions.31 The Program must place 

a conspicuous notice directly on the 

face of any evidence of the appraiser’s 

authority to appraise stating, ‘‘Not 

Eligible To Appraise Federally Related 

Transactions,’’ and the appraiser must 

not be listed in active status on the 

National Registry. 

The ASC extranet application allows 

States to update their appraiser 

credential information directly to the 

National Registry. Only Authorized 

Registry Officials are allowed to request 

access for their State personnel (see 

section C below). The ASC will issue a 

UserName and Password to the 

designated State personnel responsible 

for that State’s National Registry entries. 

Designated State personnel are required 

to protect the right of access, and not 

share their UserName or Password with 

anyone. State agencies must adopt and 

implement a written policy to 

adequately protect the right of access, as 

well as the ASC issued UserName and 

Password. 

For those States not using the ASC 

extranet application, the ASC has 

provided detailed specifications 

regarding the data elements on the 

National Registry and reporting 

procedures.32

The ASC creates a National Registry 

number for each appraiser and protects 

each appraiser’s privacy rights. The 

unique identification number is 

provided to appropriate State and 

Federal regulatory agencies to simplify 

multi-State queries regarding specific 

appraisers. 

B. Registry Fee and Invoicing Policies 

Each State must remit to the ASC the 

annual Registry fee, as set by the ASC, 

for State certified or licensed appraisers 

within the State to be listed on the 

National Registry.33 Requests to prorate 

refunds or partial-year registrations will 

not be granted. If a State collects 

multiple-year fees for multiple-year 

certifications or licenses, the State may 

choose to remit to the ASC the total 

amount of the multiple-year Registry 

fees, or to remit annually. The ASC will 

record appraisers on the National 

Registry only for the number of years 

paid. When a State’s failure to pay a 

past due invoice results in appraisers 

being listed as inactive, the ASC will 

not change those appraisers back to 

active status until payment is received. 

An inactive status on the National 

Registry, for whatever the reason, 

renders an appraiser ineligible to 

perform appraisals in connection with 

federally related transactions. 

C. Access to National Registry Data 

The ASC Web site provides free 

access to the public portion of the 

National Registry at www.asc.gov. The 

public portion of the National Registry 

data may be downloaded using 

predefined queries or user-customized 

applications. 

Access to the full database, which 

includes some non-public data (e.g., 

certain disciplinary action information), 

is restricted to authorized State and 

Federal regulatory agencies. States must 

designate a high ranking officer, such as 

an executive director, to serve as the 

State’s Authorized Registry Official, and 

provide to the ASC, in writing, 

information regarding the designated 

Authorized Registry Official. States 

should ensure that the authorization 

information provided to the ASC is 

updated and accurate. 

D. Information Sharing 

Information sharing (routine exchange 

of certain information among lenders, 

governmental entities, State agencies 

and the ASC) is essential for carrying 

out Title XI. Title XI requires the ASC, 

any other Federal agency or 

instrumentality, or any federally 

recognized entity to report any action of 

a State certified or licensed appraiser 

that is contrary to the purposes of Title 

XI to the appropriate State agency for 

disposition. The ASC believes that full 

implementation of this Title XI 

requirement is vital to the integrity of 

the system of State appraiser regulation. 

The National Registry’s value and 

usefulness are largely dependent on the 

quality and frequency of State’s data 

submissions. Accurate and frequent data 

submissions from all States are 

necessary to maintain an up-to-date 

National Registry. States must submit 

appraiser data to the ASC at least 

monthly. If there are no changes to the 

data, the State agency must notify the 

ASC of that fact in writing. States are 

encouraged to submit data as frequently 

as possible. 

State agencies must report 

expeditiously any disciplinary action 34

taken against an appraiser to the ASC. 

As of July 1, 2013, all States will be 

required to report disciplinary action 

via the extranet application as soon as 

practicable for the State to do so. States 

not reporting via the extranet 

application will be required to provide, 

in writing to the ASC, circumstances 

preventing compliance with this 

requirement. Prior to July 1, 2013, at a 

minimum, this information must be 

submitted with the State’s monthly, or 

more frequent, Registry data 

submission. For the most serious 

disciplinary actions (i.e., voluntary 

surrenders, suspensions and 

revocations, or any action that 

interrupts a credential holder’s ability to 

practice), the State agency must notify 

the ASC as soon as practicable in order 

for the ASC to inactivate the appraiser’s 

status on the National Registry, thereby 

making the appraiser ineligible to 

perform appraisals in connection with 

federally related transactions, or other 

transactions requiring the use of State 

certified or licensed appraisers. 

Title XI contemplates the reasonably 

free movement of certified and licensed 

appraisers across State lines. This 

freedom of movement assumes, 

however, that certified and licensed 

appraisers are, in all cases, held 

accountable and responsible for their 

actions while performing appraisal 

activities. To ensure this accountability, 

States should establish routine ways to 

communicate with each other regarding 

matters of mutual interest, including the 

activities and status of persons who are 

certified or licensed in multiple States. 

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35 Includes applications for credentialing of State 

licensed, certified residential or certified general 

classifications, and trainee and supervisor 

classifications. 

36 If a State accepts education-related affidavits 

from applicants for initial licensure in any noncertified classification, upon the appraiser’s 

application to upgrade to a certified classification, 

the State must require documentation to support 

the appraiser’s educational qualification for the 

certified classification, not just the incremental 

amount of education required to move from the 

non-certified to the certified classification. 

37For example: 

(1) A State may conduct an additional audit using 

a higher percentage of audited appraisers; or 

(2) a State may publically post action taken to 

sanction non-compliant appraisers to increase 

awareness in the appraiser community of the 

importance of compliance with continuing 

education requirements. 

38See Appendix C, Glossary of Terms, for the 

definition of ‘‘federally recognized credential.’’ If 

prior to July 1, 2013, a State accepted experiencerelated affidavits from applicants for initial 

licensure in any non-certified classification, upon 

the appraiser’s application to upgrade to a certified 

classification, the State must require experience 

documentation to support the appraiser’s 

Continued 

E. Summary of Requirements 

Appendix B provides a summary of 

requirements and related 

implementation standards for each 

Policy Statement. The summary of 

requirements and implementation 

standards sets forth expectations for a 

State to demonstrate that its Program 

meets Title XI mandates. 

Policy Statement 4 

Application Process 

AQB Criteria sets forth the minimum 

education, experience and examination 

requirements for credentialing of real 

property appraisers. In the application 

process, States must, at a minimum, 

employ a reliable means of validating 

both education and experience credit 

claimed by applicants for 

credentialing.35

A. Processing of Applications 

States must process applications in a 

consistent, equitable and welldocumented manner. 

States must ensure appraiser 

credential applications submitted for 

processing do not contain expired 

examinations as established by AQB 

Criteria (24-month examination validity 

period). 

Applications for credentialing should 

be timely processed by State agencies 

(within 90 days). Any delay in the 

processing of applications should be 

sufficiently documented in the file to 

justify the delay. 

B. Qualifying Education for Initial or 

Upgrade Applications 

States must verify that: 

(1) The applicant’s claimed education 

courses are acceptable under AQB 

Criteria; and 

(2) The applicant has successfully 

completed courses consistent with AQB 

Criteria for the appraiser credential 

sought. 

Documentation must be provided by 

applicants to support education claimed 

by applicants for initial credentialing or 

upgrade. 

States may not accept an affidavit for 

education claimed from applicants for 

certification. 

Effective July 1, 2013, States may not 

accept an affidavit for education 

claimed from applicants for any 

federally recognized credential.36

States must maintain adequate 

documentation to support verification of 

claimed education by applicants. 

C. Continuing Education for 

Reinstatement and Renewal 

Applications 

1. Reinstatement Applications 

States must verify that: 

(1) The applicant’s claimed 

continuing education courses are 

acceptable under AQB Criteria; and 

(2) The applicant has successfully 

completed all continuing education 

consistent with AQB Criteria for 

reinstatement of the appraiser credential 

sought. 

Documentation must be provided by 

applicants to support continuing 

education claimed by applicants for 

reinstatement. 

States may not accept an affidavit for 

continuing education claimed from 

applicants for reinstatement. 

States must maintain adequate 

documentation to support verification of 

claimed education. 

2. Renewal Applications 

States must ensure that continuing 

education courses for renewal of an 

appraiser credential are consistent with 

AQB Criteria. 

States must ensure that continuing 

education hours required for renewal of 

an appraiser credential were completed 

consistent with AQB Criteria. 

States may accept affidavits for 

continuing education credit claimed for 

credential renewal so long as the State 

implements a reliable validation 

procedure that adheres to the following 

objectives and requirements: 

a. Validation objectives—The State’s 

validation procedures must be 

structured to permit acceptable 

projections of the sample results to the 

entire population of subject appraisers. 

Therefore, the sample must include an 

adequate number of affidavits to have an 

acceptable chance of identifying 

appraisers who fail to comply with AQB 

Criteria, and the sample must include a 

reasonable representation of the 

appraiser population being sampled. 

b. Minimum Standards—The 

following minimum standards apply to 

these audits: 

(1) Validation must include a prompt 

post-approval audit. Each audit of an 

affidavit for continuing education credit 

claimed must be completed within 60 

days from the date the renewed 

credential is issued; 

(2) States must audit the continuing 

education-related affidavit for each 

credentialed appraiser selected in the 

sampling procedure; 

(3) The State must determine that the 

education courses claimed conform to 

AQB Criteria and that the appraiser 

successfully completed each course; 

(4) When a State determines that an 

appraiser’s continuing education does 

not meet AQB Criteria, the State must 

take appropriate action to suspend the 

appraiser’s eligibility to perform 

appraisals in federally related 

transactions until such time that the 

requisite continuing education has been 

completed. Also, upon such a 

determination, the State must notify the 

ASC as soon as practicable in order for 

the appraiser’s record on the National 

Registry to be updated appropriately; 

and 

(5) If more than ten percent of the 

audited appraisers fail to meet the AQB 

Criteria, the State must take remedial 

action 37 to address the apparent 

weakness of its affidavit process. The 

ASC will determine on a case-by-case 

basis whether remedial actions are 

effective and acceptable. 

c. Documentation—States must 

maintain adequate documentation to 

support its affidavit renewal and audit 

procedures and actions. 

d. List of Education Courses—To 

promote accountability, the ASC 

encourages States accepting affidavits 

for continuing education credit claimed 

for credential renewal to require that the 

appraiser provide a list of courses to 

support the affidavit. 

D. Experience for Initial or Upgrade 

Applications 

States must ensure that appraiser 

experience logs conform to AQB 

Criteria. 

States may not accept an affidavit for 

experience credit claimed from 

applicants for certification. 

Effective July 1, 2013, States may not 

accept an affidavit for experience credit 

claimed from applicants for any 

federally recognized credential.38

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qualification for the certified classification, not just 

the incremental amount of experience required to 

move from the non-certified to the certified 

classification. For example, if a State accepted an 

experience affidavit from an appraiser to support 

the appraiser’s initial hours to qualify for the 

licensed classification, and subsequently that 

appraiser applies to upgrade to the certified 

residential classification, the State must require 

documentation to support the full experience hours 

required for the certified residential classification, 

not just the difference in hours between the two 

classifications. 

39Title XI § 1122(b), 12 U.S.C. 3351. 

40Effective July 1, 2013, States will be evaluated 

for compliance with this Title XI requirement. 

41See Appendix A, Compliance Review Process, 

for an explanation of ASC Findings. 

1. Validation Required 

States must implement a reliable 

validation procedure to verify that each 

applicant’s: 

(1) Experience meets AQB Criteria; 

(2) Experience is USPAP compliant; 

and 

(3) Experience hours have been 

successfully completed consistent with 

AQB Criteria. 

2. Validation Procedures, Objectives and 

Requirements 

a. Selection of Work Product 

Program staff or State board members 

must select the work product to be 

analyzed for USPAP compliance; 

applicants may not have any role in 

selection of work product. States must 

analyze a representative sample of the 

applicant’s work product. 

b. USPAP Compliance 

For appraisal experience to be 

acceptable under AQB Criteria, it must 

be USPAP compliant. States must 

exercise due diligence in determining 

whether submitted documentation of 

experience or work product 

demonstrates compliance with USPAP. 

Persons analyzing work product for 

USPAP compliance must have sufficient 

knowledge to make that determination. 

c. Determination of Experience Time 

Periods 

When measuring the experience time 

period required by AQB Criteria, States 

must review each appraiser’s experience 

log and note the dates of the first and 

last acceptable appraisal activity 

performed by the applicant. At a 

minimum, the time period spanned 

between those appraisal activities must 

comply with the AQB Criteria. 

d. Supporting Documentation 

States must maintain adequate 

documentation to support validation 

methods. The applicant’s file, either 

electronic or paper, must include the 

information necessary to identify each 

appraisal assignment selected and 

analyzed by the State, notes, letters and/ 

or reports prepared by the official(s) 

evaluating the report for USPAP 

compliance, and any correspondence 

exchanged with the applicant regarding 

the appraisals submitted. This 

supporting documentation may be 

discarded upon the completion of the 

first ASC Compliance Review performed 

after the credential issuance or denial 

for that applicant. 

E. Examination 

States must ensure that an appropriate 

AQB-approved qualifying examination 

is administered for each of the federally 

recognized appraiser classifications 

requiring an examination. 

F. Summary of Requirements 

Appendix B provides a summary of 

requirements and related 

implementation standards for each 

Policy Statement. The summary of 

requirements and implementation 

standards sets forth expectations for a 

State to demonstrate that its Program 

meets Title XI mandates. 

Policy Statement 5 

Reciprocity 

A. Reciprocity Policy 

Title XI contemplates the reasonably 

free movement of certified and licensed 

appraisers across State lines. Beginning 

July 1, 2013, the ASC will monitor 

Programs for compliance with the 

reciprocity provision of Title XI as 

amended by the Dodd-Frank Act.39 Title 

XI requires that in order for a State’s 

appraisers to be eligible to perform 

appraisals for federally related 

transactions, the State must have a 

reciprocity policy in place for issuing a 

reciprocal credential if: 

a. The appraiser is coming from a 

State that is ‘‘in compliance’’; and 

b. (i) The appraiser holds a valid 

credential from that State; and 

(ii) The credentialing requirements of 

that State (as they currently exist) meet 

or exceed those of the reciprocal 

credentialing State (as they currently 

exist). 

An appraiser relying on a credential 

from a State that does not have such a 

policy in place may not perform 

appraisals for federally related 

transactions. A State may be more 

lenient in the issuance of reciprocal 

credentials by implementing a more 

open door policy. However, States 

cannot impose additional impediments 

to issuance of reciprocal credentials.40

For purposes of implementing the 

reciprocity policy, States with an ASC 

Finding 41 of ‘‘Poor’’ do not satisfy the 

‘‘in compliance’’ provision for 

reciprocity. Therefore, States are not 

required to recognize, for purposes of 

granting a reciprocal credential, the 

license or certification of an appraiser 

credentialed in a State with an ASC 

Finding of ‘‘Poor.’’ 

B. Application of Reciprocity Policy 

In order to assist States in 

implementing reciprocity in a manner 

that complies with Title XI, the 

following provides further illustration of 

the reciprocity policy through examples 

of application. 

The examples refer to the reciprocity 

policy requiring issuance of a reciprocal 

credential IF: 

a. The appraiser is coming from a 

State that is ‘‘in compliance’’; AND 

b. (i) The appraiser holds a valid 

credential from that State; AND 

(ii) The credentialing requirements of 

that State (as they currently exist) meet 

or exceed those of the reciprocal 

credentialing State (as they currently 

exist). 

1. Additional Requirements Imposed on 

Applicants 

STATE A requires that prior to 

issuing a reciprocal credential, the 

applicant must certify that disciplinary 

proceedings are not pending against that 

applicant in any jurisdiction. Under 

b(ii) above, if this requirement is not 

imposed by STATE A on its own 

applicants for credentialing, STATE A 

cannot impose this requirement on 

applicants for reciprocal credentialing. 

2. Credentialing Requirements 

An appraiser is seeking a reciprocal 

credential in STATE A. The appraiser 

holds a valid credential in STATE Z, 

even though it was issued in 2007. This 

satisfies b(i) above. However in order to 

satisfy b(ii), STATE A would evaluate 

STATE Z’s credentialing requirements 

as they currently exist to determine 

whether they meet or exceed STATE A’s 

current requirements for credentialing. 

C. Appraiser Compliance Requirements 

Appraisers granted reciprocity must 

comply with the home State agencies’ 

and reciprocating States’ policies, rules 

and statutes governing appraisers, 

including requirements for payment of 

certification and licensing fees, as well 

as continuing education. An appraiser 

must pay a National Registry fee for 

each State in which a credential is held. 

D. Summary of Requirements 

Appendix B provides a summary of 

requirements and related 

implementation standards for each 

Policy Statement. The summary of 

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42For example: 

(1) Consent agreements requiring additional 

education may not specify a particular course 

provider, thereby discriminating against other 

providers on the State’s approved course listing 

offering the same course; or 

(2) courses from professional organizations may 

not be automatically approved and/or approved in 

a manner that is less burdensome than the State’s 

normal approval process. 

43Title XI § 1118(a), 12 U.S.C. 3347. 

44See Appendix C, Glossary of Terms, for the 

definition of ‘‘complaint.’’ 

45See Appendix C, Glossary of Terms, for the 

definition of ‘‘special documented circumstances.’’ 46Title XI § 1117, 12 U.S.C. 3346. 

requirements and implementation 

standards sets forth expectations for a 

State to demonstrate that its Program 

meets Title XI mandates. 

Policy Statement 6 

Education 

AQB Criteria sets forth minimum 

requirements for appraiser education 

courses. This Policy Statement 

addresses proper administration of 

education requirements for compliance 

with AQB Criteria. (For requirements 

concerning qualifying and continuing 

education in the application process, 

see Policy Statement 4, Application 

Process.) 

A. Course Approval 

States must ensure that approved 

appraiser education courses are 

consistent with AQB Criteria. 

States must maintain sufficient 

documentation to support that approved 

appraiser education courses conform to 

AQB Criteria. 

States should ensure that course 

approval expiration dates assigned by 

the State coincide with the endorsement 

period assigned by the AQB’s Course 

Approval Program and/or International 

Distance Education Certification Center 

(IDECC), or any other AQB-approved 

organization providing approval of 

course design and delivery. 

States should ensure that educational 

providers are afforded equal treatment 

in all respects.42 The ASC encourages 

States to accept courses approved by the 

AQB’s Course Approval Program. 

B. Distance Education 

States must ensure that distance 

education courses meet AQB Criteria. 

States must ensure the delivery 

mechanism for distance education 

courses offered by a non-academic 

provider has been approved by an AQBapproved organization (e.g. IDECC) 

providing approval of course design and 

delivery. 

C. Summary of Requirements 

Appendix B provides a summary of 

requirements and related 

implementation standards for each 

Policy Statement. The summary of 

requirements and implementation 

standards sets forth expectations for a 

State to demonstrate that its Program 

meets Title XI mandates. 

Policy Statement 7 

State Agency Enforcement 

A. State Agency Regulatory Program 

Title XI requires the ASC to monitor 

the States for the purpose of 

determining whether the State processes 

complaints and completes 

investigations in a reasonable time 

period, appropriately disciplines 

sanctioned appraisers and maintains an 

effective regulatory program.43

B. Enforcement Process 

States must ensure that the system for 

processing and investigating 

complaints 44 and sanctioning 

appraisers is administered in a timely, 

effective, consistent, equitable, and 

well-documented manner. 

1. Timely Enforcement 

States must process complaints of 

appraiser misconduct or wrongdoing in 

a timely manner to ensure effective 

supervision of appraisers, and when 

appropriate, that incompetent or 

unethical appraisers are not allowed to 

continue their appraisal practice. 

Absent special documented 

circumstances,45 final administrative 

decisions regarding complaints must 

occur within one year (12 months) of 

the complaint filing date. 

2. Effective Enforcement 

Effective enforcement requires that 

States investigate allegations of 

appraiser misconduct or wrongdoing, 

and if allegations are proven, take 

appropriate disciplinary or remedial 

action. Dismissal of an alleged violation 

solely due to an ‘‘absence of harm to the 

public’’ is inconsistent with Title XI. 

Financial loss or the lack thereof is not 

an element in determining whether 

there is a violation. The extent of such 

loss, however, may be a factor in 

determining the appropriate level of 

discipline. 

Persons analyzing complaints for 

USPAP compliance must be 

knowledgeable about appraisal practice 

and USPAP. 

States must analyze each complaint to 

determine whether additional 

violations, especially those relating to 

USPAP, should be added to the 

complaint. 

Closure of a complaint based on a 

State’s statute of limitations results in 

dismissal of a complaint without the 

investigation of the merits of the 

complaint, and is inconsistent with the 

Title XI requirement that States assure 

effective supervision of the activities of 

credentialed appraisers.46

3. Consistent and Equitable Enforcement 

Absent specific documented facts or 

considerations, substantially similar 

cases within a State should result in 

similar dispositions. 

4. Well-Documented Enforcement 

‘‘Well-documented’’ means that States 

obtain and maintain sufficient relevant 

documentation pertaining to a matter so 

as to enable understanding of the facts 

and determinations in the matter and 

the reasons for those determinations. 

a. Complaint Files 

Complaint files must: 

• Include documentation outlining 

the progress of the investigation; 

• Demonstrate that appraisal reports 

are analyzed and all USPAP violations 

are identified; 

• Include rationale for the final 

outcome of the case (i.e. dismissal or 

imposition of discipline); 

• Include documentation explaining 

any delay in processing, investigation or 

adjudication; 

• Contain documentation that all 

ordered or agreed upon discipline, such 

as probation, fine, or completion of 

education is tracked and that 

completion of all terms is confirmed; 

and 

• Be organized in a manner that 

allows understanding of the steps taken 

throughout the complaint, investigation, 

and adjudicatory process. 

b. Complaint Logs 

States must track all complaints using 

a complaint log. The complaint log must 

record all complaints, regardless of their 

procedural status in the investigation 

and/or resolution process, including 

complaints pending before the State 

board, Office of the Attorney General, 

other law enforcement agencies, and/or 

Offices of Administrative Hearings. The 

complaint log must include the 

following information in an electronic, 

sortable spreadsheet format: 

1. Case number 

2. Name of respondent 

3. Actual date the complaint was 

received by the State 

4. Source of complaint (e.g. consumer, 

lender, bank regulator, appraiser, 

hotline) 

5. Last action taken and date taken (e.g. 

1/1/10 spoke to Attorney General 

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47Title XI § 1118(c), 12 U.S.C. 3347; 12 CFR, part 

1102, subpart B. 

48Title XI § 1118(a), 12 U.S.C. 3347. 

49 Id. 

50 Id. 51 Id. 

52The proceeding is more in the nature of a 

Briefing not subject to open meeting requirements. 

The presentation is an opportunity for the State to 

brief the ASC—to offer, emphasize and clarify the 

facts, policies and laws concerning the proceeding, 

and for the ASC members to ask questions. 

Additional consideration is given to the fact that 

this stage of the proceeding is pre-decisional. 

and scheduled an informal 

conference with the Respondent to 

discuss settlement, 1/12/10 spoke to 

the Administrative Hearing 

Commission and scheduled a 

hearing date, 2/27/10 filed objection 

to continuance) 

6. Current status of the complaint 

7. Spreadsheet showing chronological 

record of each action taken 

8. Date the complaint was closed (e.g. 

final disposition by the 

Administrative Hearing Agency, 

Office of the Attorney General, State 

Appraiser Regulatory Agency or 

Court of Appeals) 

9. Method of disposition (e.g. dismissal, 

letter of warning, consent order, 

final order) 

C. Summary of Requirements 

Appendix B provides a summary of 

requirements and related 

implementation standards for each 

Policy Statement. The summary of 

requirements and implementation 

standards sets forth expectations for a 

State to demonstrate that its Program 

meets Title XI mandates. 

Policy Statement 8 

Interim Sanctions 

A. Authority 

Title XI as amended by the DoddFrank Act states that the ASC shall have 

the authority to impose interim actions 

and suspensions, as an alternative to or 

in advance of a non-recognition 

proceeding,47 against a State agency that 

fails to have an effective Program.48 In 

determining whether such a Program is 

effective, the ASC shall conduct an 

analysis as required by Title XI.49 An 

ASC Finding of ‘‘Poor’’ on the Report 

issued to a State at the conclusion of an 

ASC Compliance Review will trigger an 

analysis by the ASC for potential 

interim sanction(s). 

B. Interim Sanctions 

Title XI as amended by the DoddFrank Act grants the ASC authority to 

remove a State licensed or certified 

appraiser from the National Registry on 

an interim basis, not to exceed 90 days, 

pending State agency action on 

licensing, certification, registration, or 

disciplinary proceedings.50

C. Opportunity To Be Heard or Correct 

Conditions 

The ASC shall provide the State 

agency with: 

1. Written notice of intention to 

impose an interim sanction; and 

2. Opportunity to respond or to 

correct the conditions causing such 

notice to the State. Notice and 

opportunity to respond or correct the 

conditions shall be in accordance with 

section D, Procedures. 

D. Procedures 

This section prescribes the ASC’s 

procedures which will be followed in 

arriving at a decision by the ASC to 

impose an interim sanction against a 

State agency. 

1. Notice 

The ASC shall provide a written 

Notice of intention to impose an interim 

sanction (Notice) to the State agency. 

The Notice shall contain the ASC’s 

analysis as required by Title XI of the 

State’s licensing and certification of 

appraisers, the issuance of temporary 

licenses and certifications for 

appraisers, the receiving and tracking of 

submitted complaints against 

appraisers, the investigation of 

complaints, and enforcement actions 

against appraisers.51 The ASC shall 

verify the State’s date of receipt, and 

publish both the Notice and the State’s 

date of receipt in the Federal Register. 

2. State Agency Response 

Within 15 days of receipt of the 

Notice, the State may submit a response 

to the ASC’s Executive Director. 

Alternatively, a State may submit a 

Notice Not to Contest with the ASC’s 

Executive Director. The filing of a 

Notice Not to Contest shall not 

constitute a waiver of the right to a 

judicial review of the ASC’s decision, 

findings and conclusions. Failure to file 

a Response within 15 days shall 

constitute authorization for the ASC to 

find the facts to be as presented in the 

Notice and analysis. The ASC, for good 

cause shown, may permit the filing of a 

Response after the prescribed time. 

3. Briefs, Memoranda and Statements 

Within 45 days after the date of 

receipt by the State agency of the Notice 

as published in the Federal Register, the 

State agency may file with the ASC’s 

Executive Director a written brief, 

memorandum or other statement 

providing factual data and policy and 

legal arguments regarding the matters 

set out in the Notice and analysis. 

4. Oral Presentations to the ASC 

Within 45 days after the date of 

receipt by the State agency of the Notice 

as published in the Federal Register, the 

State may file a request with the ASC’s 

Executive Director to make oral 

presentation to the ASC. If the State has 

filed a request for oral presentation, the 

matter shall be heard within 45 days. 

An oral presentation shall be considered 

as an opportunity to offer, emphasize 

and clarify the facts, policies and laws 

concerning the proceeding, and is not a 

Meeting 52 of the ASC. On the 

appropriate date and time, the State 

agency will make the oral presentation 

before the ASC. Any ASC member may 

ask pertinent questions relating to the 

content of the oral presentation. Oral 

presentations will not be recorded or 

otherwise transcribed. Summary notes 

will be taken by ASC staff and made 

part of the record on which the ASC 

shall decide the matter. 

5. Conduct of Interim Sanction 

Proceedings 

(a) Written Submissions. All aspects 

of the proceeding shall be conducted by 

written submissions, with the exception 

of oral presentations allowed under 

subsection 4 above. 

(b) Disqualification. An ASC member 

who deems himself or herself 

disqualified may at any time withdraw. 

Upon receipt of a timely and sufficient 

affidavit of personal bias or 

disqualification of such member, the 

ASC will rule on the matter as a part of 

the record. 

(c) Authority of ASC Chairperson. The 

Chairperson of the ASC, in consultation 

with other members of the ASC 

whenever appropriate, shall have 

complete charge of the proceeding and 

shall have the duty to conduct it in a fair 

and impartial manner and to take all 

necessary action to avoid delay in the 

disposition of proceedings. 

(d) Rules of Evidence. Except as is 

otherwise set forth in this section, 

relevant, material and reliable evidence 

that is not unduly repetitive is 

admissible to the fullest extent 

authorized by the Administrative 

Procedure Act (5 U.S.C. 551, et seq.) and 

other applicable law. 

6. Decision of the ASC and Judicial 

Review 

Within 90 days after the date of 

receipt by the State agency of the Notice 

as published in the Federal Register, or 

in the case of oral presentation having 

been granted, within 30 days after 

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53 5 U.S.C. 703—Form and venue of proceeding. 

54See Appendix C, Glossary of Terms, for the 

definition of ‘‘Areas of Concern.’’ 

55An ASC Finding of ‘‘Poor’’ may result in 

significant consequences to the State. See Policy 

Statement 5, Reciprocity; see also Policy Statement 

8, Interim Sanctions. 

presentation, the ASC shall issue a final 

decision, findings and conclusions and 

shall publish the decision promptly in 

the Federal Register. The final decision 

shall be effective on issuance. The 

ASC’s Executive Director shall ensure 

prompt circulation of the decision to the 

State agency. A final decision of the 

ASC is a prerequisite to seeking judicial 

review. 

7. Computing Time 

Time computation is based on 

business days. The date of the act, event 

or default from which the designated 

period of time begins to run is not 

included. The last day is included 

unless it is a Saturday, Sunday, or 

Federal holiday, in which case the 

period runs until the end of the next day 

which is not a Saturday, Sunday or 

Federal holiday. 

8. Documents and Exhibits 

Unless otherwise provided by statute, 

all documents, papers and exhibits filed 

in connection with any proceeding, 

other than those that may be withheld 

from disclosure under applicable law, 

shall be placed by the ASC’s Executive 

Director in the proceeding’s file and will 

be available for public inspection and 

copying. 

9. Judicial Review 

A decision of the ASC under this 

section shall be subject to judicial 

review. The form of proceeding for 

judicial review may include any 

applicable form of legal action, 

including actions for declaratory 

judgments, writs of prohibitory or 

mandatory injunction in a court of 

competent jurisdiction.53

Appendix A—Compliance Review 

Process 

The ASC monitors State Programs for 

compliance with Title XI. The monitoring of 

a State Program is largely accomplished 

through on-site visits known as a Compliance 

Review (Review). A Review is conducted 

over a two- to four-day period, and is 

scheduled to coincide with a meeting of the 

Program’s decision-making body whenever 

possible. ASC staff reviews the seven 

compliance areas addressed in Policy 

Statements 1 through 7. Sufficient 

documentation demonstrating compliance 

must be maintained by a State and made 

available for inspection during the Review. 

ASC staff reviews a sampling of 

documentation in each of the seven 

compliance areas. The sampling is intended 

to be representative of the State Program in 

its entirety. 

Based on the Review, ASC staff provides 

the State with an ASC staff report detailing 

preliminary findings. The State is given 60 

days to respond to the ASC staff report. At 

the conclusion of the Review, a Compliance 

Review Report (Report) is issued to the State 

with the ASC Finding on the Program’s 

overall compliance, or lack thereof, with 

Title XI. Deficiencies resulting in noncompliance in any of the seven compliance 

areas are cited in the Report. ‘‘Areas of 

Concern’’54 which potentially expose a 

Program to compliance issues in the future 

are also addressed in the Report. The ASC’s 

final disposition is based upon the ASC staff 

report, the State’s response and staff’s 

recommendation. 

The following chart provides an 

explanation of the ASC Findings and rating 

criteria for each ASC Finding category. The 

ASC Finding places particular emphasis on 

whether the State is maintaining an effective 

regulatory Program in compliance with Title 

XI. 

ASC finding Rating criteria Review cycle* 

Excellent .......................................... • State meets all Title XI mandates and complies with requirements 

of ASC Policy Statements.

• State maintains a strong regulatory Program. 

• Very low risk of Program failure. 

2-year. 

Good ................................................ • State meets the majority of Title XI mandates and complies with 

the majority of ASC Policy Statement requirements.

• Deficiencies are minor in nature. 

• State is adequately addressing deficiencies identified and correcting them in the normal course of business. 

• State maintains an effective regulatory Program. 

• Low risk of Program failure. 

2-year. 

Needs Improvement ........................ • State does not meet all Title XI mandates and does not comply 

with all requirements of ASC Policy Statements.

• Deficiencies are material but manageable and if not corrected in a 

timely manner pose a potential risk to the Program.

• State may have a history of repeated deficiencies but is showing 

progress toward correcting deficiencies.

• State regulatory Program needs improvement. 

• Moderate risk of Program failure. 

2-year with Follow-up Review. 

Not Satisfactory ............................... • State does not meet all Title XI mandates and does not comply 

with all requirements of ASC Policy Statements.

• Deficiencies present a significant risk and if not corrected in a timely manner pose a well-defined risk to the Program.

• State may have a history of repeated deficiencies and requires 

more supervision to ensure corrective actions are progressing. 

• State regulatory Program has substantial deficiencies. 

• Substantial risk of Program failure. 

1-year. 

Poor 55 ............................................. • State does not meet all Title XI mandates and does not comply 

with all requirements of ASC Policy Statements.

• Deficiencies are significant and severe, require immediate attention 

and if not corrected represent critical flaws in the Program.

• State may have a history of repeated deficiencies and may show a 

lack of willingness or ability to correct deficiencies.

• High risk of Program failure. 

Continuous monitoring. 

* Program history or nature of deficiency may warrant a more accelerated Review Cycle. 

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56Title XI § 1101, 12 U.S.C. 3331; Title XI 

§ 1118(a), 12 U.S.C. 3347; AQB Real Property 

Appraiser Qualification Criteria. 

57Title XI §§ 1116(a), (c) and (e), 12 U.S.C. 3345; 

Title XI § 1118(a), 12 U.S.C. 3347. 

58Title XI § 1118(a), 12 U.S.C. 3347. 

59 Id; Title XI § 1118(b), 12 U.S.C. 3347. 

60Title XI §§ 1116 (a), (c) and (e), 12 U.S.C. 3345; 

Title XI § 1118(a), 12 U.S.C. 3347; Title XI § 1113, 

12 U.S.C. 3342; AQB Real Property Appraiser 

Qualification Criteria. 

61Title XI § 1118(a), 12 U.S.C. 3347. 

62Title XI §§ 1116(a), (c) and (e), 12 U.S.C. 3345. 

63Title XI § 1118(b), 12 U.S.C. 3347. 

64Title XI § 1122(a)(1), 12 U.S.C. 3351. 

65Title XI § 1122(a)(2), 12 U.S.C. 3351. 

66Title XI § 1118(a), 12 U.S.C. 3347; Title XI 

§ 1109(a), 12 U.S.C. 3338. 

67See Appendix C, Glossary of Terms, for the 

definition of ‘‘disciplinary action.’’ 

68Title XI § 1118(a), 12 U.S.C. 3347; Title XI 

§ 1109(a), 12 U.S.C. 3338. 

69 Id. 

70Title XI § 1118(a), 12 U.S.C. 3347. 

71 Id. 

72 Id. 

73 Id. 

74 Id. 

75 Id. 

76 Id. 

77 Id. 

78 Id. 

79Title XI § 1118(a), 12 U.S.C. 3347. 

80Title XI § 1118(a), 12 U.S.C. 3347; AQB Real 

Property Appraiser Qualification Criteria. 

81 Id. 

82 Id. 

83Title XI § 1118(a), 12 U.S.C. 3347. 

84 Id. 

85 Id. 

The ASC has two primary Review Cycles: 

Two-year and one-year. Most States are 

scheduled on a two-year Review Cycle. States 

may be moved to a one-year Review Cycle if 

the ASC determines more frequent on-site 

Reviews are needed to ensure that the State 

maintains an effective Program. Generally, 

States are placed on a one-year Review Cycle 

because of non-compliance issues or serious 

areas of concerns that warrant more frequent 

on-site visits. Both two-year and one-year 

Review Cycles include a review of all aspects 

of the State’s Program. 

The ASC may conduct Follow-up Reviews. 

A Follow-up Review focuses only on specific 

areas identified during the previous on-site 

Review. Follow-up Reviews usually occur 

within 6–12 months of the previous Review. 

In addition, as a risk management tool, ASC 

staff identifies State Programs that may have 

a significant impact on the nation’s appraiser 

regulatory system in the event of Title XI 

compliance issues. For States that represent 

a significant percentage of the credentials on 

the National Registry, ASC staff performs 

annual on-site Priority Contact visits. The 

primary purpose of the Priority Contact visit 

is to review topical issues, evaluate 

regulatory compliance issues, and maintain a 

close working relationship with the State. 

This is not a complete Review of the 

Program. The ASC will also schedule a 

Priority Contact visit for a State when a 

specific concern is identified that requires 

special attention. 

Appendix B—Summary of Requirements 

This Appendix B provides a summary of 

requirements and related implementation 

standards for Policy Statements 1 through 7. 

The summary of requirements and 

implementation standards sets forth 

expectations for a State to demonstrate that 

its Program meets Title XI mandates. 

Policy Statement 1 

Statutes, Regulations, Policies and 

Procedures Governing State Programs 

1. States must require that appraisals be 

performed in accordance with the latest 

version of USPAP.56

2. States must adopt and/or implement all 

relevant AQB Criteria.57

3. States must have policies, practices and 

procedures consistent with Title XI.58

4. States must have funding and staffing 

sufficient to carry out their Title XI-related 

duties.59

5. States must use proper designations and 

permitted scope of practice for certified 

residential or certified general classifications, 

and as of July 1, 2013, a State must use the 

proper designations and permitted scope of 

practice for the licensed classification, and 

trainee and supervisor classifications.60

6. State board members, and any persons 

in policy or decision-making positions, must 

perform their responsibilities consistent with 

Title XI.61

7. States’ certification and licensing 

requirements must meet the minimum 

requirements set forth in Title XI.62

8. State agencies must be granted adequate 

authority by the State to maintain an effective 

regulatory Program in compliance with Title 

XI.63

Policy Statement 2 

Temporary Practice 

1. States must recognize, on a temporary 

basis, appraiser credentials issued by another 

State if the property to be appraised is part 

of a federally related transaction.64

2. State agencies must adhere to mandates 

and prohibitions as determined by the ASC 

that deter the imposition of excessive fees or 

burdensome requirements for temporary 

practice.65

Policy Statement 3 

National Registry 

1. States must reconcile and pay National 

Registry invoices in a timely manner.66

2. States must submit all disciplinary 

actions 67 to the ASC for inclusion on the 

National Registry.68

3. As of July 1, 2013, all States will be 

required to report disciplinary action via the 

extranet application as soon as practicable.69

4. States must designate a high ranking 

officer, such as an executive director, who 

will serve as the State’s Authorized Registry 

Official, and must ensure that non-public 

data is appropriately protected.70

5. The State must provide to the ASC, in 

writing, information regarding the selected 

Authorized Registry Official, and any 

individual(s) authorized to act on their 

behalf, and should ensure that the 

authorization information provided to the 

ASC is kept current.71

6. States using the ASC extranet 

application must ensure that designated 

personnel with UserName and Password 

access protect the right of access, and not 

share the UserName or Password with 

anyone.72

7. States must adopt and implement a 

written policy to adequately protect the right 

of access, as well as the ASC issued 

UserName and Password.73

8. States must proactively minimize risk of 

clerical error that may result in inaccurate 

entries to the National Registry.74

9. States must submit appraiser data to the 

ASC at least monthly. If a State’s data does 

not change during the month, the State 

agency must notify the ASC of that fact in 

writing.75

10. States must notify the ASC as soon as 

practicable if it is determined that a 

credential holder listed on the National 

Registry does not, or did not, qualify for the 

credential held.76

11. States must notify the ASC as soon as 

practicable in the event of voluntary 

surrenders, suspensions and revocations, or 

any action that interrupts a credential 

holder’s ability to practice in order for the 

ASC to inactivate the appraiser’s status on 

the National Registry.77

12. If a State certified or licensed appraiser 

chooses not to pay the Registry fee, then the 

Program must ensure that any potential user 

of that appraiser’s services is aware that the 

appraiser’s certificate or license is limited to 

performing appraisals in connection with 

non-federally related transactions.78

Policy Statement 4 

Application Process 

Processing of Applications 

1. States must process applications in a 

consistent, equitable and well-documented 

manner.79

2. States must ensure appraiser credential 

applications submitted for processing do not 

contain expired examinations as established 

by AQB Criteria (24-month examination 

validity period).80

Education 

1. States must verify that the applicant’s 

claimed education courses are acceptable 

under AQB Criteria, whether for initial 

credentialing, renewal, upgrade or 

reinstatement.81

2. States must verify that the applicant has 

successfully completed courses consistent 

with AQB Criteria for the appraiser 

credential sought, whether for initial 

credentialing, renewal, upgrade or 

reinstatement.82

3. States must maintain adequate 

documentation to support verification.83

4. States may not accept an affidavit for 

education claimed from applicants for 

certification.84

5. Effective July 1, 2013, States may not 

accept an affidavit for education claimed 

from applicants for any federally recognized 

credential.85

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Federal Register / Vol. 77, No. 169 / Thursday, August 30, 2012 / Notices 52735 

86 Id. 

87Title XI § 1118(a), 12 U.S.C. 3347; AQB Real 

Property Appraiser Qualification Criteria. 

88Title XI § 1118(a), 12 U.S.C. 3347. 

89 Id. 

90Title XI § 1118(a), 12 U.S.C. 3347; AQB Real 

Property Appraiser Qualification Criteria. 

91Title XI § 1118(a), 12 U.S.C. 3347. 

92 Id. 

93Title XI § 1118(a), 12 U.S.C. 3347; AQB Real 

Property Appraiser Qualification Criteria. 

94Title XI § 1118(a), 12 U.S.C. 3347. 

95 Id. 

96 Id. 

97 Id. 

98 Id. 

99Title XI § 1118(a), 12 U.S.C. 3347; AQB Real 

Property Appraiser Qualification Criteria. 

100Title XI § 1122(b), 12 U.S.C. 3351. 

101 Id. 

102Title XI § 1118(a), 12 U.S.C. 3347; AQB Real 

Property Appraiser Qualification Criteria. 

103Title XI § 1118(a), 12 U.S.C. 3347. 

104Title XI § 1118(a), 12 U.S.C. 3347; AQB Real 

Property Appraiser Qualification Criteria. 

105Title XI § 1118(a), 12 U.S.C. 3347. 

106 Id. 

107 Id. 

108 Id. 

109 Id. 

110 Id. 

111 Id. 

6. States may not accept an affidavit for 

continuing education claimed from 

applicants for reinstatement.86

7. States may accept affidavits for 

continuing education credit claimed for 

credential renewal so long as the State 

implements a reliable validation procedure.87

8. Audits of affidavits for continuing 

education credit claimed must be completed 

within 60 days from the date the renewed 

credential is issued.88

9. States are required to take remedial 

action when it is determined that more than 

ten percent of audited appraiser’s affidavits 

for continuing education credit claimed fail 

to meet the minimum AQB Criteria.89

10. States must require the 7-hour National 

USPAP Update Course for renewals 

consistent with AQB Criteria.90

Experience 

1. States may not accept an affidavit for 

experience credit claimed from applicants for 

certification.91

2. Effective July 1, 2013, States may not 

accept an affidavit for experience credit 

claimed from applicants for any federally 

recognized credential.92

3. States must ensure that appraiser 

experience logs conform to AQB Criteria.93

4. States must use a reliable means of 

validating appraiser experience claims on all 

initial or upgrade applications for appraiser 

credentialing.94

5. States must select the work product to 

be analyzed for USPAP compliance on all 

initial or upgrade applications for appraiser 

credentialing.95

6. States must analyze a representative 

sample of the applicant’s work product on all 

initial or upgrade applications for appraiser 

credentialing.96

7. States must exercise due diligence in 

determining whether submitted 

documentation of experience or work 

product demonstrates compliance with 

USPAP on all initial applications for 

appraiser credentialing.97

8. Persons analyzing work product for 

USPAP compliance must have sufficient 

knowledge to make that determination.98

Examination 

1. States must ensure that an appropriate 

AQB-approved qualifying examination is 

administered for each of the federally 

recognized credentials requiring an 

examination.99

Policy Statement 5 

Reciprocity 

1. Effective July 1, 2013, in order for a 

State’s appraisers to be eligible to perform 

appraisals for federally related transactions, 

the State must have a reciprocity policy in 

place for issuing a reciprocal credential to an 

appraiser from another State under the 

conditions specified in Title XI.100

2. States may be more lenient in the 

issuance of reciprocal credentials by 

implementing a more open door policy; 

however, States may not impose additional 

impediments to issuance of reciprocal 

credentials.101

Policy Statement 6 

Education 

1. States must ensure that appraiser 

education courses are consistent with AQB 

Criteria.102

2. States must maintain sufficient 

documentation to support that approved 

appraiser courses conform to AQB 

Criteria.103

3. States must ensure the delivery 

mechanism for distance education courses 

offered by a non-academic provider has been 

approved by an AQB-approved organization 

providing approval of course design and 

delivery (e.g. IDECC).104

Policy Statement 7 

State Agency Enforcement 

1. States must maintain relevant 

documentation to enable understanding of 

the facts and determinations in the matter 

and the reasons for those determinations.105

2. States must resolve all complaints filed 

against appraisers within one year (12 

months) of the complaint filing date, except 

for special documented circumstances.106

3. States must ensure that the system for 

processing and investigating complaints and 

sanctioning appraisers is administered in an 

effective, consistent, equitable, and welldocumented manner.107

4. States must track complaints of alleged 

appraiser misconduct or wrongdoing using 

an electronic complaint log.108

5. States must appropriately document 

enforcement files and include rationale.109

6. States must regulate, supervise and 

discipline their credentialed appraisers.110

7. Persons analyzing complaints for USPAP 

compliance must be knowledgeable about 

appraisal practice and USPAP.111

Appendix C—Glossary of Terms 

AQB Criteria: Refers to the Real Property 

Appraiser Qualification Criteria as 

established by the Appraiser Qualifications 

Board of the Appraisal Foundation setting 

forth minimum education, experience and 

examination requirements for the licensure 

and certification of real property appraisers, 

and minimum requirements for ‘‘Trainee’’ 

and ‘‘Supervisory’’ appraisers. 

Assignment: As referenced herein, for 

purposes of temporary practice, 

‘‘assignment’’ means one or more real estate 

appraisals and written appraisal report(s) 

covered by a single contractual agreement. 

Complaint: As referenced herein, any 

document filed with, received by, or serving 

as the basis for possible inquiry by the State 

agency regarding alleged violation of Title XI, 

Federal or State law or regulation, or USPAP 

by a credentialed appraiser, appraiser 

applicant, or for allegations of unlicensed 

appraisal activity. A complaint may be in the 

form of a referral, letter of inquiry, or other 

document alleging appraiser misconduct or 

wrongdoing. 

Credentialed appraisers: Refers to State 

licensed, certified residential or certified 

general appraiser classifications. 

Disciplinary action: As referenced herein, 

corrective or punitive action taken by or on 

behalf of a State agency which may be formal 

or informal, or may be consensual or 

involuntary, resulting in any of the following: 

a. Revocation of credential 

b. Suspension of credential 

c. Written consent agreements, orders or 

reprimands 

d. Probation or any other restriction on the 

use of a credential 

e. Fine 

f. Voluntary surrender in lieu of 

disciplinary action 

g. Other acts as defined by State statute or 

regulation as disciplinary 

With the exception of voluntary surrender, 

suspension or revocation, such action may be 

exempt from reporting to the National 

Registry if defined by State statute, regulation 

or written policy as ‘‘non-disciplinary.’’ 

Federally related transaction: Refers to any 

real estate related financial transaction 

which: 

(a) A federal financial institutions 

regulatory agency engages in, contracts for, or 

regulates; and 

(b) Requires the services of an appraiser. 

(See Title XI § 1121(4), 12 U.S.C. 3350.) 

Federal financial institutions regulatory 

agencies: Refers to the Board of Governors of 

the Federal Reserve System, the Federal 

Deposit Insurance Corporation, the Office of 

the Comptroller of the Currency, and the 

National Credit Union Administration. (See 

Title XI § 1121(6), 12 U.S.C. 3350.) 

Home State agency: As referenced herein, 

State agency or agencies that grant an 

appraiser a licensed or certified credential. 

Residency in the home State is not required. 

Appraisers may have more than one home 

State agency. 

Non-federally recognized credentials or 

designations: Refers to any State appraiser 

credential or designation other than State 

licensed, certified residential or certified 

general classifications, and trainee and 

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52736 Federal Register / Vol. 77, No. 169 / Thursday, August 30, 2012 / Notices 

supervisor classifications as defined in Policy 

Statement 1, and is not recognized by the 

federal regulators for purposes of their 

appraisal regulations. 

Real estate related financial transaction: 

Any transaction involving: 

(a) The sale, lease, purchase, investment in 

or exchange of real property, including 

interests in property, or the financing thereof; 

(b) The refinancing of real property or 

interests in real property; and 

(c) The use of real property or interests in 

property as security for a loan or investment, 

including mortgage-backed securities. (See 

Title XI § 1121(5), 12 U.S.C. 3350.) 

Special documented circumstances: As 

referenced herein, extenuating circumstances 

(fully documented) beyond the control of the 

State agency that delays normal processing of 

a complaint such as: complaints involving 

investigation by a law enforcement agency 

such as a criminal investigation when the 

investigative agency requests that the State 

refrain from proceeding; final disposition 

that has been appealed to a higher court; 

documented medical condition of the 

respondent; ancillary civil litigation; and 

complex fraud cases that involve multiple 

individuals and reports. 

State: Any State, Commonwealth, 

Territory, or Possession of the United States, 

the District of Columbia, the Commonwealth 

of Puerto Rico, the Commonwealth of the 

Northern Mariana Islands, American Samoa, 

Guam, or the United States Virgin Islands. 

(American Samoa does not have a Program.) 

State board: As referenced herein, ‘‘State 

board’’ means a group of individuals (usually 

appraisers, bankers, consumers, and/or real 

estate professionals) appointed by the 

Governor or a similarly positioned State 

official to assist State Programs. A State 

agency may be headed by a board, 

commission or an individual. Most States 

have a board (or commission) with 

responsibilities and authorities varying from 

State to State. 

Uniform Standards of Professional 

Appraisal Practice (USPAP): Refers to 

appraisal standards promulgated by the 

Appraisal Standards Board of the Appraisal 

Foundation establishing minimum 

requirements for development and reporting 

of appraisals, including real property 

appraisal. Title XI requires appraisals 

prepared by State certified and licensed 

appraisers to be performed in conformance 

with USPAP. 

Appendix D—ASC Bulletins and 

Supplements 

[Appendix D will contain the following 

ASC Bulletins and Supplements that were 

issued to assist States in understanding and 

complying with the self-enabling provisions 

of the Dodd-Frank Act.] 

• Bulletin No. 10–1 issued October 14, 2010 

on Modification of Annual National 

Registry Fee 

• Supplement to ASC Bulletin 10–1 dated 

Oct. 22, 2010 

• Bulletin No. 2011–01 issued March 18, 

2011 on Statutory Provisions Affecting 

State Appraiser Regulatory Programs 

• Supplement to Bulletin No. 2011–01 

issued August 11, 2011 on Mandatory AQB 

Criteria for State Licensed Appraisers 

* * * * * 

By the Appraisal Subcommittee, 

Dated: August 27, 2012. 

Peter Gillispie, 

Chairman. 

[FR Doc. 2012–21452 Filed 8–29–12; 8:45 am] 

BILLING CODE 6700–01–P 

FEDERAL MARITIME COMMISSION 

Ocean Transportation Intermediary 

License Applicants 

The Commission gives notice that the 

following applicants have filed an 

application for an Ocean Transportation 

Intermediary (OTI) license as a NonVessel-Operating Common Carrier 

(NVO) and/or Ocean Freight Forwarder 

(OFF) pursuant to section 40901 of the 

Shipping Act of 1984 (46 U.S.C. 40101). 

Notice is also given of the filing of 

applications to amend an existing OTI 

license or the Qualifying Individual (QI) 

for a licensee. 

Interested persons may contact the 

Office of Ocean Transportation 

Intermediaries, Federal Maritime 

Commission, Washington, DC 20573, by 

telephone at (202) 523–5843 or by email 

at OTI@fmc.gov. 

AAW Global Logistics PTY Ltd. (NVO), 

Level 3, 55 Wellington Street, 

Victoria, Saint Kilda 3182 Australia, 

Officers: Joseph J. Pace, Director, 

(Qualifying Individual), Barry J. 

Misiurak, Director, Application Type: 

New NVO License. 

AOG International, Inc. (NVO & OFF), 

4801 Woodway Drive, #371 East, 

Houston, TX 77056, Officers: J. Shelli 

Ali, Vice President, (Qualifying 

Individual), Christina L. ForthMatthews, President, Application 

Type: Add NVO Service. 

Boacon Synergy Inc (NVO & OFF), 7933 

Mill Creek Circle, West Chester, OH 

45069, Officers: Benjamin O. Afolabi, 

President, (Qualifying Individual), 

Beatrice O. Afolabi, Secretary, 

Application Type: Add NVO Service. 

Canei Group Corporation (NVO & OFF), 

7241 NW 54th Street, Miami, FL 

33166, Officers: Graziella M. Lobato, 

Director, (Qualifying Individual), 

Daniel D. Ferraz, Director, 

Application Type: Add Trade Names 

Kaizen World Freight and KWF 

Logistics. 

Cars USA, Inc. dba Cars USA Logistics 

Inc. (OFF), 425 Bush Street, #425, San 

Francisco, CA 94108–3713, Officers: 

Fiona Spence, President, (Qualifying 

Individual), Richard Clark, Director, 

Application Type: New OFF License. 

Ceva Freight, LLC dba EGL Ocean Line 

dba Ceva Ocean Line (NVO & OFF), 

15350 Vickery Drive, Houston, TX 

77032, Officers: Johnathon C. 

Grossgart, Vice President, (Qualifying 

Individual), Matthew Ryan, President, 

Application Type: QI Change. 

Ellen Newman Logistics, L.L.C. (OFF), 

920 Richmond Drive, Metairie, LA 

70003, Officer: Ellen A. Newmn, 

Member, (Qualifying Individual), 

Application Type: New OFF License. 

Equipsa Inc. (OFF), 2105 NW 102 

Avenue, Miami, FL 33172, Officers: 

Isabel Montejo, Vice President, 

(Qualifying Individual), Arthur S. 

Gelfand, President, Application Type: 

QI Change. 

Howard Thomas Exports, Inc. dba HTX 

International (NVO & OFF), 15535 

Texaco Avenue, Paramount, CA 

90723, Officers: Maximiliaan Hoes, 

Secretary, (Qualifying Individual), 

Howard T. Smith, President, 

Application Type: New NVO & OFF 

License. 

Merengue Cargo Shipping Inc. (NVO), 

11 Sunny Slope Terrace, Yonkers, NY 

10703, Officers: Amarelis Robles, 

President, (Qualifying Individual), 

Jose O. Perdomo, Vice President, 

Application Type: New NVO License. 

National Air Cargo, Inc. (NVO & OFF), 

350 Windward Drive, Orchard Park, 

NY 14127, Officers: Richard T. Burke, 

Jr., Assistant Secretary, (Qualifying 

Individual), Christopher J. Alf, 

President, Application Type: New 

NVO & OFF License. 

New Hope Vehicle Exports LLC (NVO & 

OFF), 1000 S. Market Street, 

Wilmington, DE 19801, Officer: Javier 

Marmol, Member, (Qualifying 

Individual), Application Type: New 

NVO & OFF License. 

New Star Freight, Inc. dba American 

Freight Solutions (NVO & OFF), 

14144 Central Avenue, #H, Chino, CA 

91710, Officers: Xiaosong Liu, 

Secretary, (Qualifying Individual), Fei 

Yu, Director, Application Type: 

Transfer License to Freight Express 

Shipping Corporation (FESCO). 

PMJ International Inc (NVO), 519 

Mountainview Drive, North 

Plainfield, NJ 07063, Officer: Pelham 

Hicks, CEO, (Qualifying Individual), 

Application Type: New NVO License. 

Seair Cargo Logistics, Inc. (NVO & OFF), 

8008 NW 90th Street, Medley, FL 

33166, Officer: Joaquin G. Ferrer, 

President, (Qualifying Individual), 

Application Type: New NVO & OFF 

License. 

Tropic Import & Export, Inc. (NVO & 

OFF), 8338 NW 68th Street, Miami, 

FL 33166, Officer: Clayde M. Couto, 

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